The rapid economic expansion experienced in the Commonwealth during
the mid  eighties thru the early nineties was a result of being
geographically situated in the right place at the right time. The great
“boom” period resulted in a rapid development pace that, during normal
times, would have required some twenty years or so to achieve. In the
Commonwealth this development pace was “squeezed” into the short span of
five or six years resulting in cultural pressures and a strain on the
infrastructure. The foreign investment which fueled the CNMI’s economic
engine was a direct result of the devaluation of the dollar in relation to
the yen at the Plaza Accords in New York in 1986. In the ensuing years
every sector of the economy in the Northern Marianas grew by an annual
increase of sixteen percent. In all probability the islands will not see
such growth again in this century nor perhaps well into the 21st century.
However, the Northern Marianas should expect an annual normal growth of 2.5
to 3 percent. The area is fortunate that its proximity to major Asian
markets permits visitors from these areas to travel to this destination in
a rather short time at reasonable air fares. This will continue to
stimulate growth in visitor arrivals. Economic conditions are changing
which requires a change in methods to generate investor interest. If the
people of the CNMI hope to see a return to moderate levels of  increased
annual  economic growth outside the tourism sector an aggressive investment
promotion program must be undertaken.
    The negative publicity generated by confusion over Article XII could be
overcome by placing appropriate, well designed, positive advertising
announcements in the major news media throughout Asia and elsewhere such as
the Asian Economic Review, Wall Street Journal and other business and
investment oriented magazines. Those with suitable property  available for
lease, namely, sites which could be exposed to foreign investors should be
prepared to document that such land is free of any Article XII problem or
otherwise be prepared to offer some form of guarantee against such. If the
site is suitable for hotel or golf course development the land owner should
give such projects a “paper personality”, in the form of an investment
prospectus, which at the very minimum should consist of: a cadastral map,
aerial photographs, a financial feasibility analysis based on a typical,
albeit, hypothetical project which, in the case of a hotel, would display
an estimated statement of income and expenses at various levels of
occupancy with all assumptions employed clearly explained. This analysis
should be accompanied by a cash flow projection as well as an analysis of
the Commonwealth’s existing tourist industry and its potential market. The
preparation of such “tools” are standard promotional documents that greatly
enhance the possibility of leasing land to foreign investors for those in
the Commonwealth who still wish to do so.
     An office is needed where  local people can register the
characteristics of the property they wish to either lease or make available
for use as equity participation in joint ventures with foreign investors.
This inventory of such land would then be available for review and
consideration by potential off-island investors. As it now stands, the
availability of such land for lease remains unknown to all but a few.

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