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DPL comments on Mariana Resort/Best Sunshine assignment lease
The Department of Public Lands has read the co-assignment of the Marianas Resort and Spa’s public land lease to Best Sunshine International, Ltd. and has asked them to meet some conditions pursuant to Kan Pacific’s lease agreement with the government, according to DPL Secretary Pete A. Tenorio last week.
“…And if those are met there is no reason why DPL would not approve the assignment,” Tenorio added.
Tenorio said DPL has the right, for example, to enter the property to studies like appraisal for the upcoming RFP, when asked to name some of these conditions.
“The bottom line is we wanted to make sure that whatever business gross revenue that they collected would be accounted as a business gross revenue for the purposes of computing the rental—based on the gross receipt. There is nothing in the provision that will share their capital gain with DPL, because it’s not in the agreement. So the other aspect of getting revenue for DPL is to apply the gross and…how much the total assignment fee” is at “about $3.5 million. So that will be counted as a business gross receipt,” he said.
On the request for proposal process for these lands, Tenorio said they are still waiting for responses. “There have been a number of inquiries into my office…How many will respond? I don’t know. That remains to be seen.”
On a contractor for public land use plan, Tenorio said they have recommended one bid to the Division of Procurement & Supply that they considered “most responsive.”
“…Because the pricing, the amount of fee they are proposing, is within our budget. The others are way sky high.”
“It’s an off-island group,” he added.
Tenorio hopes to know more about the bid selection around January or February. “I am rushing to get it going because we have initiated the establishment of an advisory board and one of the functions of the land advisory board is to be engaged in the establishment and conduct of the land use plan.”
He added they are waiting for the last nominee from the Office of the Governor before constituting the advisory board group.
