Decision on hotel’s QC application out soon

The Commonwealth Development Authority’s board of directors would convene possibly next week to discuss the qualifying certificate application by Saipan World Resort, which is undertaking a $20-million expansion and improvement project.

CDA executive director Mary Lou S. Ada said the agenda of the board meeting would include the CDA’s final recommendation on the QC application. She said the CDA has until July 19 to submit this to the governor, who would have 45 days from the submission to act on such recommendation.

Board members and staff of the CDA had a four-hour roundtable meeting Saturday to discuss possible tax benefits that could be given to the World Resort, according to Ada.

A formal board meeting, however, would be necessary for the CDA to officially adopt a final recommendation.

Ada refused to disclose specific details of the possible tax benefits, but added that the board members are “pro-investors.” She also said the CDA would meet with World Resort to ensure that the applicant would be supportive of its final recommendation.

Before the board’s informal meeting, Ada said the CDA met with the Division of Revenue and Taxation about the hotel’s QC application.

“We’re working closely with the administration so it will be a smooth transaction,” Ada said.

The company operating the hotel, World Corp., has indicated its commitment to develop the Saipan World Resort as a major tourist facility in the CNMI, when it sought a 25-year extension of its land lease from the Marianas Public Lands Authority. Supposedly, the lease will expire after 2015. Details of the QC application have remained confidential to date.

The Investment Incentive Act of 2000 encourages economic development in the CNMI by offering tax breaks to businesses that engage in or implement a desirable project or business activity.

Eligible businesses under the law may apply and receive a qualifying certificate executed by the governor as recommended by CDA that will allow for certain tax rebates or abatements.

World Resort demolished the old Royal Taga Hotel, considered the first modern tourist facility in the Northern Marianas after World War II, to give way to a major renovation plan that includes the construction of a modern waterpark facility. The waterpark will have water slides, a lazy pool, a separate children’s pool, a poolside bar, and an outdoor barbecue area.

The hotel had also disclosed of plans to refurbish all of the main building’s 265 guest rooms, which would be redefined with new amenities.

It also plans to construct a bigger, more spacious ballroom that can seat between 300 to 500 people. An adjoining new banquet room will also be built, along with a specialty restaurant and another buffet restaurant. The lobby will see expansive renovation, where a new coffee shop and sports bar will rise.

World Resort projects that the major renovation and expansion project could be completed by Feb. 2005.