Last chance for Neo Gold Wings

The Department of Public Lands granted yesterday a three-month extension or up to Sept. 30, 2011, for Neo Gold Wings Paradise to pay its public land lease arrears of $211,578.96, or there won’t be any more negotiation to reinstate a land lease to build a $1.6 billion to $3 billion casino resort on Tinian.

The original deadline was June 30.

“After Sept. 30 and there’s no payment, that would be it,” DPL Secretary Oscar M. Babauta told Saipan Tribune yesterday.

Babauta also gave Neo Gold Wings 60 days after the payment of arrears to remit a one-year advanced annual rental to DPL.

The advanced payment should cover September 2011 to August 2012 at $6,000 a month, for a total of $72,000.

Neo Gold Wings plans to build a “six-star” casino hotel and resort, a theme park, and a 36-hole golf course on Tinian.

The first of the two-phase project includes the construction of a 36-hole golf course and close to 800 cottages. The second phase includes a hotel and casino and a theme park.

Yeon G. Kim, senior director for The Vitala Group, which is one of Neo Gold Wings’ investor partners, wrote to DPL asking for an extension on the original deadline for Neo Gold Wings to complete its payments.

Babauta, in a response yesterday, agreed to consider granting Neo Gold Wings until Sept. 30 to pay the $211,578.96, and at least until Nov. 30 to remit the one-year advanced payment.

He reiterated that DPL is thankful for Neo Gold Wings’ interest in pursuing its lease to develop a property in Pina, Tinian.

“The DPL is prepared to work with NGP and all its ventures once all arrears and all other specified payments have been received by our office,” Babauta told Kim.

The DPL secretary also said the lease agreement with Neo Gold Wings will remain in effect subject to DPL collecting the entire amount specified.

“Upon completion of these payment terms, the DPL will prepare amendments to the lease agreement which will assist NGP in timely progressing with its developments,” Babauta added.

DPL had terminated Neo Gold Wings’ land lease last year over non-payment of leases, but the casino investor’s renewed interest in pursuing the project—including partnering with investors from the U.S., Japan, and Korea—prompted DPL to reconsider its decision, with certain restrictions

Neo Gold Wings chair and chief executive officer Joseph Hyun and vice chair Kwi Dong Woo, along with their partner investors, met with CNMI government officials in May on Saipan and Tinian.

Another of DPL’s requirements, a $3 million security deposit, is still being worked on.

On Tinian, only Tinian Dynasty Hotel and Casino has been operating since 1998. Besides Neo Gold Wings, two other casino investors—Bridge Investment Group and MRDC—are also pursuing casino projects on Tinian.

Rota’s first and so far only casino has temporarily closed, while another investor has yet to be granted a temporary license to operate.

On Saipan, voters twice rejected legalizing casino on the island but this has not deterred lawmakers. A pending local bill legalizing casino operation on Saipan is currently under committee review.