$60M-$80M hotel breaks ground

The $60 million to $80 million Flame Sako Resort and Spa yesterday began construction on a 109,003-square meter area in As Matuis, at a time when many businesses have been closing or reducing operations due to the local and global economic turmoil.

“Through this resort project, and through this groundbreaking today, Flame Sako is betting on the future of the CNMI’s tourism market, and we are here to support Flame Sako’s faith in our market, as demonstrated by this significant long-term investment commitment,” Gov. Benigno R. Fitial said in his remarks at yesterday’s groundbreaking ceremony.

Fitial said the CNMI is grateful for Flame Sako’s confidence in the local market, and the government stands by this investment commitment.

The governor urged all permitting and regulatory agencies to expedite the processing of permits to complete the project.

“This project’s success affects our Commonwealth’s overall economic progress and the livelihoods of our local residents. This project will create jobs, attract tourists, bring more revenue into our economy, and provide more funding for government operations,” Fitial added.

Flame Sako Resort and Spa is planned as a six-star hotel with 357 rooms.

Public Lands Sec. John DelRosario said the project also includes a large water park, and a convention center that can accommodate 500 people.

Kang Dae Sik, president and chief executive officer of Flame Sako Resort and Spa, through a translator, expressed appreciation to the government and the community for supporting the investment.

He told Saipan Tribune that the project construction will last for 20 months from yesterday.

Other government officials and business leaders at the groundbreaking ceremony lauded the Korean firm for braving the tough economic times to build a hotel and villa, just north of The Palms Resort.

Saipan Mayor Juan B. Tudela, in his brief remarks, said the time is drawing near for the CNMI to see the kind of economy it had two decades ago, when demand for more hotel rooms was needed.

“Hopefully, in the very near future we are ready to see another shining star when Flame Sako Resort and Spa will rise on this site where we are standing today,” he said.

The governor, in his remarks, also said that Flame Sako seems to understand the sentiment of legendary investor Warren Buffet: “Be greedy when others are fearful and be fearful when others are greedy.”

The Legislature approved on Feb. 4 Flame Sako’s land lease agreement with the Department of Public Lands.