Another investor sniffs out San Roque property

A Chinese conglomerate is now planning to lease approximately 1 million square meters of public and private land from north of the former The Palms Resort Saipan to north of Marianas Resort & Spa in the San Roque-Marpi area, barely a month after Island Ventures LLC scrapped its plan to build a new $60 million five-star hotel in San Roque.

Public Lands Secretary Oscar M. Babauta, in an interview yesterday, said the multi-million investment includes the construction of a new resort and retirement homes.

“This is a humungous investment in terms of land area, which is approximately 1 million square meters. The conglomerate is now talking to the Department of Public Lands and private property owners,” Babauta told Saipan Tribune.

DPL expects to see the conceptual design in the near future. But Babauta requested that the identity of the Chinese conglomerate not be published at this time.

“This project is very ambitious and we look forward to the actual proposal,” Babauta said.

Rep. Edmund Villagomez (Cov-Saipan), chairman of the House Committee on Commerce and Tourism, said he wouldn’t be surprised if there are still investors that are interested in investing in the CNMI, especially as it relates to tourism.

“The area that you mentioned is a prime spot for hotels and the like. It would be huge,” he added.

The area north of the former The Palms Resort and near the former la Fiesta Mall has been leased and later abandoned by at least three groups of investors in the last three years.

First there was Flame Sako, which had planned an $80-million hotel, but abandoned the project after groundbreaking with much fanfare and land clearing, among other things.

Unlike succeeding groups of investors, Flame Sako and DPL’s lease agreement got the approval of the Legislature.

Leisure Planner followed, and had planned a $120-million hotel in the same 5.1-hectare of public land. But it scrapped the project even before an actual lease agreement was signed and approved by lawmakers.

Island Ventures LLC was the third group of investors to consider the area. It’s a California-based company with financial investments in Hong Kong.

Babauta said the latest group of investors plans not only to lease the same property, but other private and public lands in the area as well.

The DPL chief said the department welcomes businesses that are interested in investing in the CNMI. He said the local economy needs infusion of fresh investments.

Another group of investors, Neo Gold Wings Paradise recently lost its chance to pursue a $1.6 billion to $3 billion “six-star” casino hotel and resort on Tinian when it was able pay only $5,000 of over $220,000 in land lease arrears with DPL. The department had given Neo Gold Wings more time to pay its arrears so that the two could negotiate a reinstatement of the terminated lease when the investor abandoned the property.

Babauta, a former House speaker, said yesterday that they will be pursuing legal action against Neo Gold Wings.