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Kan Pacific, DPL still in talks on lease extension
Marianas Resort and Spa general manager Gloria Cavanagh disclosed that they are still in discussions with the Department of Public Lands regarding the extension of the Kan Pacific property’s land lease which expires in 2018.
Last month DPL secretary Pete Tenorio recommended an alternative solution for leasing agreements for hotels with expiring public land leases with the government.
As reported earlier, two alternatives were given, an extension or terminating its land lease early, which will require legislative approval, for longer term leases.
This gives some assurance to Hotel Association of the Northern Mariana Islands members,
Cavanagh said that Marianas Resort’s lease is the first to expire, so other HANMI members are closely watching Kan Pacific’s negotiations with DPL.
Cavanagh, however, said that unfortunately she is unable to share specifics of their dealing with DPL and Tenorio.
“The talks with DPL are new that I have not been able to even speak to HANMI regarding our progress. I am sure they will be glad to hear that talks are going well. We were ready to go last fall but unfortunately had unexpected obstacles,” she said.
She added that she believes that they have the right people working with them in the negotiations and are glad that progress is being made.
“Again the secretary has been supportive and we believe we are working in the right direction. As soon as I have specifics to share I will. Our stance has not changed since we have issued our open letter back in September,” Cavanagh said.
Marianas Resort’s public land lease expires on April 30, 2018. It has a commitment of some $30 million with added investments waiting in the wings, while other hotels such as Fiesta Resort and Spa, Hyatt Regency Saipan, Pacific Islands Club and Kanoa Resort are nearing public land lease expiration as well.
With HANMI keeping a close watch on the negotiations between DPL and Kan Pacific, future investments in bettering member hotels are being held back until an assurance is made.
