$3B casino project on Tinian scrapped

Neo Gold Wings Paradise had planned to build a $1.6 billion to $3 billion “six-star” casino hotel and resort on Tinian but managed to pay only $5,000 of over $220,000 in land lease arrears with the Department of Public Lands on Wednesday despite extended considerations, prompting DPL to make the 300 hectares of public land available to other interested investors.

This up-to-$3 billion project is the latest in planned developments in the CNMI to fizzle out in recent period.

DPL Secretary Oscar M. Babauta, in an interview yesterday, said he and Neo Gold Wings chairman and chief executive officer Joseph Hyun, who flew in from Korea, met on Wednesday to talk about the investor group’s land lease arrears.

“I’m very disappointed and frustrated with NGP. We gave them too much consideration,” Babauta told Saipan Tribune.

He said Neo Gold Wings still couldn’t get financial support for its ambitious project, despite years of planning and pursuing it.

“I found it very suspicious that that they’re rigging public land to buy time to sell the product [casino project],” he said, adding that it’s disappointing that Neo Gold Wings couldn’t “swallow what they chew.”

DPL extended the July 30, 2011, deadline to Sept. 30, 2011, for Neo Gold Wings to pay its land lease arrears, before the two could pursue talks about reinstating the investor’s terminated land lease since August 2010. DPL ended the lease because of the investor’s non-payment of land rental since the groundbreaking for the project in July 2009.

Neo Gold Wings missed the Sept. 30, 2011, deadline but DPL waited for Hyun’s arrival on Oct. 5.

“After several considerations granted to NGP, they still did not pay off their debts. It seems that NGP is not financially capable of putting a $3-billion project as evidenced by non-payment of over $200,000 in land rental. There will not be any discussion of reinstating the lease. Technically that land is available to any other interested investor,” Babauta said.

He said any new investor wanting to lease public land will have to pay a one-year advance lease, and a $3 million escrow.

Babauta, a former House speaker, said Hyun managed to pay $5,000 in land lease arrears.

“They still owe DPL over $217,000. DPL will pursue collection through legal means. …At least I’m thankful they paid something. But they have to pay the rest of what they owe the people,” he added.

Senate Vice President Jude U. Hofschneider (R-Tinian), chairman of the Tinian Legislative Delegation, said in a separate interview that he’s also disappointed that Neo Gold Wings treated the CNMI badly.

“They gave people false hope. They should have told us that they couldn’t finance the project. Then we could move on and make the land available to other investors,” he said.

Hofschneider also said it’s sad that an investor that the Legislature and DPL entrusted with public land failed to make good on its promises.

Neo Gold Wings had planned to build a casino hotel and resort that will also feature a theme park and a 36-hole golf course on Tinian. The first of the two-phase project included the construction of a 36-hole golf course and close to 800 cottages. The second phase included a hotel and casino and a theme park.