Tinian casino resort land lease soon before Legislature

Lt. Gov. Jude U. Hofschneider and Tinian Mayor Ramon Dela Cruz separately said yesterday that a proposed public land lease for a $200-million casino resort on Tinian will soon be presented before the House of Representatives and Senate for action following what they described as a successful negotiation between Macau-based Alter City Group and the CNMI Department of Public Lands.

Any proposed lease of more than 5 hectares of public lands requires the Legislature’s approval.

“Over a period, the investor will invest at least $200 million in this project. It will help the economy of Tinian and the CNMI. I urge the Legislature to review the proposed lease and consider approving it,” Hofschneider told Saipan Tribune.

He said Alter City, along with its investment partners, has investments in Hong Kong, Taiwan, and mainland China.

Dela Cruz, in a separate interview, said he’s also calling for a joint session of the Legislature to “consider” a proposed lease agreement between DPL and Alter City Group.

“The proposed lease agreement has been successfully negotiated by DPL and the investor. It now goes through a publication process then it will be presented to the Legislature,” the Tinian mayor said, adding that the project “will add a great economic stimulus” to Tinian and the CNMI as a whole.

The proposed public land lease on Tinian is for 25 years, with an option to extend by 15 years, for a total of 40 years.

Hofschneider said the proposed project has three phases. The first phase involves the construction of a 362-room hotel, an 18-hole golf course, villas, and a casino. This costs some $80 million, which will be self-financed, Hofschneider said.

Alter City also still has to apply for a casino license.

The second phase, funded through venture capital equity, will include a waterpark and villas, along with a Chamorro Museum—all worth about $60 million, the lieutenant governor said.

The third and last phase also costs about $60 million, through venture capital equity, and includes the construction of a 161-room Blue Plumeria Resort.

“I believe that the proposed public contribution is helping with the Tinian airport and ferry service,” Hofschneider said.

A Republican, Hofschneider is seeking a Senate seat representing Tinian, a post he previously held as president before he ascended to become lieutenant governor. Dela Cruz, meanwhile, is seeking re-election as Tinian mayor as an independent bet.

Alter City plans to build its casino resort at Nasarino Beach/Puntan Diablo, the same area that was previously leased by Marianas Resort Development Corp. before the latter abandoned the lease. MRDC had planned to build a $300-million Matua Bay Casino Resort on the property, including an 18-hole golf course.

Tinian, like Saipan and Rota, has received offers from foreign investors for a host of multimillion and multi-billion dollar projects that eventually fizzled. This time around, Tinian officials hope that Alter City Group will be different.

“I urge the investor to honor the lease agreement once it’s approved,” Hofschneider said.

Two-thirds of Tinian lands are leased by the U.S. Department of Defense.