Dynasty asked for more info on Kastiyu resort, lease extension

Even as it describes the proposals as “very ambitious,” the Department of Public Lands is now asking Tinian Dynasty Hotel & Casino to provide a detailed development plan and other information about three proposed undertakings—a mega-resort in Kastiyu, extension of their 25-year land lease for a water park, and to add 400 rooms to Dynasty, as well as a lease of a portion of Tachogna Beach for tourism activities.
Pushing for these development plans is Tinian Dynasty’s new owner, Hong Kong-based Mega Stars Ltd., which, months later, would become part owner of a new firm that is applying for a license to develop a $2-billion casino resort on Saipan.

But if it’s any consolation, DPL seems to be inclined now on a sole-source lease agreement rather than issue a request for proposal for the Kastiyu land, provided that Tinian Dynasty/Mega Stars submit a “detailed development plan, business plan, time schedule for the commencement and completion of the project,” among other things.

DPL provided Tinian Dynasty with an outline of a “required scope of work for single sourcing of project on public land,” instead of asking Tinian Dynasty to wait for an RFP to be released, if any.

Tenorio said the outline for a scope of work, if submitted, will help DPL complete its review and due diligence with respect to Tinian Dynasty’s project.

This comes weeks after Tinian Mayor Ramon Dela Cruz and the Tinian Municipal Council asked DPL to negotiate a sole-source lease agreement with Mega Stars Overseas Ltd. to develop the Kastiyu area.

DPL Secretary Pete A. Tenorio responded on April 28 to Tinian Dynasty general manager Tom Liu’s Jan. 15 letter, seeking more information about their proposals.

“Let me say that I find your various proposals to be very ambitious, and as such they will also require a great deal of planning effort on the part of TDH and Casino and its new partners for your proposal to ultimately become a reality,” Tenorio said in his three-page letter to Liu.

Tenorio said while Liu provided some preliminary information with respect to their plan to use public lands on Tinian, DPL—as a matter of policy—“will want to go further and request more information” from Tinian Dynasty “in order for my and the governor’s office to properly review your plans aimed at eventually reaching a decision on how best to accommodate your respective plans…”

Expanded Dynasty

Dynasty wants to renew its 25-year land lease plus 15-year extension on a public land of approximately 46,675.60 square meters.

That land lease was executed on March 1, 1996, between Hong Kong Entertainment (Overseas) Investment Ltd. and the CNMI.

Liu, in his letter to DPL, said the plan is to build a word-class water theme park and expand the existing 412-room Dynasty to add 400 rooms.

Tenorio, in his letter to Liu on Monday, invites Liu for further discussion on the proposed lease extension.

The DPL secretary also wants further discussion on Dynasty’s plan to lease a portion of Tachogna Beach.

Dynasty wants to lease some 8,334 square meters of land at Tachogna Beach to develop a beach center to include a bar and restaurant, a beach volleyball pit, a barbecue area with cultural show stage and seating area, and a concession block for vendors to sell souvenirs.

The casino owner also plans to repair and upgrade the existing toilets that it offers to manage.

Mega-resort in Kastiyu

Tenorio said the one area that will involve a lot of Tinian Dynasty’s effort is a proposed mega-resort in Kastiyu, a scenic Tinian area atop Carolinas Plateau.

The Puntan Kastiyu project alone is estimated at $200 million inclusive of a six-star hotel, 36-hole championship golf courses, and a shopping mall.

Dynasty owner Mega Stars wants to lease some 482 hectares of land in Kastiyu to develop what it describes as a “dream resort named Tinian Cliff.”

The resort, according to Dynasty, will include 36-hole championship golf courses, one six-star hotel, one five-star hotel, villas, a wedding chapel, a memorial and cultural center, a horse-riding trail, a shopping mall, restaurants and bars, and other infrastructure and amenities.

“Mega Stars truly believes Tinian has the potential to be a well-known resort destination in the Marianas. To make it a reality, they need the CNMI government’s cooperation and support in granting the needed land area to develop the island. These projects will provide job opportunities for workers…” Liu said.

Tenorio, in response, said the Kastiyu development proposal “will have to be described in more detail with regards to actual structures and the utilization of this large tract of land.”

DPL gave Tinian Dynasty an outline of a “scope of work” needed for their proposal.