Best Sunshine it is

Saipan is a step closer to having a $2-billion integrated casino resort following the Lottery Commission’s unanimous decision yesterday to grant a conditional license to Best Sunshine International Ltd. after a tumultuous application process. The approval is considered “conditional” until the commission and Best Sunshine negotiate and come up with a “casino development agreement.”

An audience of mostly retirees applauded when the 4-0 vote came down at 2:22pm at the Pedro P. Tenorio Multi-Purpose Center in Susupe.

Department of Public Safety Commissioner James Deleon Guerrero, foreground, shares his views before casting a “yes” vote to the award of a conditional Saipan casino license to Best Sunshine International Ltd. yesterday afternoon, while other commissioners look on at the Pedro P. Tenorio Multi-Purpose Center in Susupe. (Haidee V. Eugenio)

The commission’s two U.S.-based consultants that investigated and reviewed the applications recommended Best Sunshine for license consideration over Marianas Stars Entertainment Inc. The consultants were The Innovation Group of Companies and B2G Global Strategies.

The “yes” votes from the commissioners were cast in this order: Finance Secretary Larrisa Larson, Deputy Attorney General Gil Birnbrich, Public Safety Commissioner James Deleon Guerrero, and Commerce Secretary and chair Sixto Igisomar.

“That’s a conditional approval pending the negotiation of a casino development agreement,” Igisomar told reporters moments after the meeting adjourned.

Another commission meeting is set for late next week or the week after. Negotiations with Best Sunshine are also expected to begin shortly.

Terence Tay, Best Sunshine’s chief operating officer, said he’s “overjoyed” and “overwhelmed” at the same time, adding that they have put in a lot of work in the application process.

He said Best Sunshine looks forward to the negotiation for a casino development agreement with the Lottery Commission.

“I just hope we can wrap it up fast. Now what really stands between us and the integrated resort is a lot of work in between, a lot of support from the people,” Tay said shortly after the commission meeting.

He likened Saipan to a ship, adding that “today is a quantum leap forward.” He expressed Best Sunshine’s appreciation for being given a chance to be able to get into a “ship with everyone here and now we just move forward and aim for our destination.”

“Deep inside, I just hope that we don’t get diverted. We hope no one tries to sink the ship or bring it to some desolated islands somewhere because we are in it together now and we just want to start work almost immediately,” Tay said.

Tay also thanked everyone who has supported Best Sunshine.

“We will not disappoint them. We will deliver what we promised. It’s going to take a bit of time, as you noticed…” he said, adding that there’s still a lot of work to be done. “We look forward to the continued support and please continue to be hopeful because we are here to stay and we are here to deliver on a promise.”

Sean King, consultant for Marianas Stars, said Marianas Stars was “obviously disappointed with the outcome but now we move on and make sure that Tinian Dynasty stays economically viable in light of an exclusive casino license on Saipan.”

Marianas Stars’ parent company, Mega Stars, brought Tinian Dynasty Hotel & Casino, saving it from the brink of collapse. Mega Stars is renovating and expanding Tinian Dynasty, which is currently the only operating casino in the CNMI.

“…now it’s just making sure that Dynasty can survive and thrive in light of this exclusive competition from Saipan,” he added.

King declined to comment when asked whether Marianas Stars is pursuing a lawsuit.

‘Give it to them’

Three retirees addressed the Lottery Commission during a public comment period at the beginning of the meeting scheduled for 2pm.

All three of them—Gonzalo DLG. Pangelinan, Catalina Nebit, and Roman Tudela—urged the commissioners to grant a license to Best Sunshine, based on the review and recommendation of consultants.

“We need to move forward. I know this is a very controversial issue but you need to do your job,” Tudela said, adding that at the end of the day, retirees, businesses, and everyone would be happy that a decision has been made.

Retirees are looking forward to the release of their deferred 25-percent pension since last year, once $30 million in bank deposit is released following a grant of a final Saipan casino license.

Igisomar said that while he cannot comment as to when exactly the retirees would receive their checks, he clarified that the commission will be approving the release of the $30 million in escrow when a license has been issued. He said at this time, the approval remains a conditional one, pending the negotiation of both parties for a signed consolidated development agreement.

Former lieutenant governor and former speaker Diego Benavente, now a retiree, said he’s excited that “the most important part of the process is done.”

“It looks like retirees will be able to get their 25-percent withheld pension so they will see a 100-percent pension once again. A lot of retirees and their families have been suffering so it will be a relief to get their 25-percent pension back. It’s a great day,” he said after attending the Lottery Commission meeting.

The Lottery Commission members received copies of the two consultants’ investigation and review report last week.

In yesterday’s meeting, three of the four commissioners spoke about their vote: Birnbrich, Deleon Guerrero, and Igisomar.

Deleon Guerrero said he thoroughly reviewed the applications that Best Sunshine and Marianas Stars submitted and publicly thanked them both “for having convincing interests to operate a casino industry” on Saipan. He said both submitted good proposals and commended their efforts.

“Mr. Chairman, with full reliance on the data that have been made available to this commission thus far, and in the interest of selecting the best qualified applicant, I hereby cast my vote in favor of Best Sunshine to be granted a casino license for the island of Saipan,” the DPS commissioner said.

He said he fully understands that they do not have to issue a license at this point, but “I do not see a logical reason and a rational basis to deny Best Sunshine with one at this point.”

The Lottery Commission’s decision came four days after Gov. Eloy S. Inos signed into law a bill repealing and reenacting the Saipan casino law in its entirety to clarify its ambiguities and fully empower the Lottery Commission to grant a casino license.

Sen. Pete Reyes (Ind-Saipan) said yesterday that he doesn’t know any of the two applicants but he only hopes and depends “on the good judgment of the Lottery Commission so we can move on.”

“I support moving on,” he added.