Fate of Rota casino investor’s ‘conditional’ license hangs in the balance

Antolin, in responding to questions about his resignation late last week, confirmed that he resigned from his post in February 2012 because there had been no casino operator since March 2011 when the lone holder of a valid license-Rota Treasure Island Corp.-temporarily stopped operations.

But he said Rota Treasure Island’s license was still valid when he stepped down from his post. Manglona said yesterday this is still valid.

The second investor, the owner of Rota Resort, was granted conditional license in July 2011.

Antolin said that conditional license holder was not able to pay the $400,000 license by November 2011 so it’s automatically revoked under commission rules.

“It would take 90 days according to our RCGC rules and regulations to pay for the license until it’s revoked automatically by RCGG. Ninety days from July 2011 passed and the (conditional) license that was issued is automatically cancelled in November 2011,” Antolin told Saipan Tribune.

Manglona, in a phone interview last night, said the casino commission plans to meet this week to decide on whether to continue to honor Rota Resort’s conditional casino license or revoke it.

The casino commission chair said the investor has been charged 10 percent for every month it fails to pay the conditional license, and the rate would have been that much by now.

“But Rota Resort continues to express interest in the casino project and continues to express interest in working with the casino commission. We are also reviewing their concerns, which I can’t disclose at this time because we still haven’t determined whether those concerns are within the purview of the commission or not, and some are legal issues we don’t have available answer right now,” Manglona said.

Sen. Juan Ayuyu (Ind-Rota), chair of the Rota Legislative Delegation, separately said yesterday that as far as the delegation is concerned, the conditional license is still valid and that the commission has not make any determination to suggest otherwise.

Antolin made clear that the casino commission does not get any appropriations from the CNMI government to run its operations.

“At the time around June 2011, we were hoping that the conditional license that was issued would solve our operations in June 2011 to the present. But that didn’t materialize because the applicant for the license did not pay for the license,” Antolin said.

Antolin also said he was offered earlier this year a position as director of the Agency for Human Resources Development, a Government of Guam Agency funded by the U.S. Department of Labor.

“I feel that since we don’t have any casino operator and the ‘conditional license’ of the current applicant was revoked for non-payment, it would be best to look for other job so that (there wont’ be) more liabilities incurred by the commission,” he said.
The Rota casino commission owes its former executive director $60,000.

But this obligation is not part of the proposed budget for the casino commission, as contained in Rep. Teresita Santos’s (Ind-Rota) local bill appropriating $13,000 for its operations and activities for fiscal year 2012.

Antolin confirmed that he’s been waiting for the commission to pay his salary between June 2011 and February 2012, or for nine months, as well as reimbursements for office supplies he paid for since they didn’t have any operational funds at the time.

“I never asked for the local bill to pass, but since you asked, it would be only fair and just that obligations of RCGC be taken cared of including my past due salary as a former executive director. I am being patient about not being paid because I know the situation of the RCGC finances.” he added.

He wasn’t paid his salary from June 2011 to February 2012.

When asked what other information he wants the public to know, he said, “That there is only one issued casino license issued by RCGC that is valid, that is to Rota Treasure Island Casino since I resigned in February 2012.”

House Local Bill 17-83, seeking to appropriate $13,000 for RCGC’s operations for fiscal year 2012, is now with the governor after the Rota Legislative Delegation passed it on first and final reading on July 12.

Of the $13,000 requested, $5,000 will be for legal counsel, $7,500 for commissioners’ compensation, and $500 for operations.

By Haidee V. Eugenio
Reporter