COP likely to get 15-year lease extension

The House Natural Resources Committee is in favor of granting a 15-year lease extension to the developers of Coral Ocean Point who have pledged to invest additional $9 million in new facilities and renovation of existing structures on the property.

But Suwaso Inc., the Japanese owner of the hotel and golf course in southern Saipan, has been asked to work out a deal with the Division of Public Lands that will answer concerns regarding the present lease agreement, according to Committee Chair Manuel A. Tenorio.

The panel met on Friday with company representatives and public lands officials to appeal Suwaso’s request for the extension on top of the initial 25-year lease. Any new lease deal needs to be approved by three-fourths of the members of both the House and the Senate.

“We left the meeting with the message for them to go back and work together. There are some areas that need to be ironed out before they go to the Legislature,” Mr. Tenorio told in an interview after the meeting.

Although public land officials have endorsed the request since Suwaso has met the requirements of the lease, the legislator said both parties still need to agree on some of the provisions of that first deal.

Mr. Tenorio declined to give specific details of what areas they must discuss, but said he sees no problem in granting the lease extension which is an option provided in the original agreement that the COP developers are now exercising.

“This is not the time to argue on these things. Our economy is real bad. We need some seed money to jump-start the economy,” he explained. “This development has been here for so many years now.”

Suwaso has spent over $20 million to build a 55-room hotel and develop the golf course and other facilities during the first 12 years of their operations.

It is only fair for them to ensure return of their investments by providing them longer lease on the government property they are occupying, according to Mr. Tenorio.

“They need to renovate some of the existing facilities. They are working on new buildings, new facilities and a new driving range. This will bring new investments of $9 million,” he added.

Both DPL and Suwaso are expected to report to the House committee again this week after “renegotiating on the terms for the next 15 years,” said Mr. Tenorio. “We are all in favor of granting extension to new development so I don’t see any reason why not unless they have very big problems.”

This is the second appeal for 15-year lease extension that reached the Legislature this year following the approval of the request of the developers of the Rota Resort and Country Club last July that had sparked disagreement between lawmakers and the Board of Public Lands.