Mega Stars laments lukewarm support for $600M Tinian plan

“It wasn’t what we expected,” said Cario Hon, chief executive officer of Mega Stars Overseas Ltd., describing a “somewhat” lukewarm response from residents and government officials even as they have already spent $40 million as part of a $600 million plan not only for Tinian Dynasty Hotel & Casino but also for a new hotel on Kastiyu Plateau and related facilities on Tinian.

He said it is a bit discouraging that Mega Stars as a foreign investor is not getting as much support from the community as they had hoped for.

Hon said that were it not for Mega Stars, Tinian Dynasty may have already been bankrupt or shut down by now and with it comes loss of revenues for Tinian and the CNMI, and loss of hundreds of jobs. He reiterated that Mega Stars has already spent more than $40 million to date to prevent Dynasty from going under.

“We just want people to be more reasonable…What we have done so far is a lot…We came here, we settled Dynasty’s obligations, we paid back taxes, back wages. But we now want to ask, does Tinian people want us or not? What do Tinian people want?” Hon asked.

Hon said Mega Stars, in negotiating a takeover of Dynasty, paid “$2 million to $3 million” in back wages.

He said since July 2013, Mega Stars has paid some $1.1 million in business gross receipts tax through Dynasty, paid some $349,000 in withholding tax, and paid some $1.777 million in gaming tax.

The Tinian Casino Gaming Control Commission gave Mega Stars up to five business days—or up to today—to resubmit its application for a license to own and operate Tinian Dynasty. The commission “returned” the application for what it cited was a failure to execute the proper forms necessary as part of the application process.

Mega Stars is also part-owner of Marianas Stars Entertainment Inc., one of the two investor groups applying for a license to exclusively develop a minimum $2 billion integrated casino resort on Saipan. The other applicant is Best Sunshine International Ltd.

The Lottery Commission is currently reviewing the Saipan casino license applications and will hold another meeting tomorrow afternoon on Capital Hill.

Hon said the result of the application process on Saipan would have impact on their $600-million plan, but just the same, he said they are pursuing their plans to expand and improve Tinian Dynasty as well as build a six-star hotel, 36-hole championship golf courses and a shopping mall in Kastiyu on Tinian.