Ex-tourism official sued for $53 million

The plan to establish a $450 million resort project on the island municipality of Tinian may remain just that after the two Japanese firms that provided financing for the development are now seeking the return of their money.

Chuo Mitsui Trust & Banking Co., Ltd., and the Resolution and Collection Corp. have filed a civil suit against former Marianas Visitors Authority Board Chair Antonio S. Guerrero demanding the immediate repayment of $53 million plus eight percent interest from December 7, 1990 as well as reasonable attorneys fees. The complaint was filed by the lawyer of the Japanese firms, Michael A. White, on June 16, 2000.

It was indeed a grand plan for Tinian which, if implemented, will put the island on the map as a first-class tourist and golf course destination. Consider this: a 1,000-room resort on a 110-hectare beach front property in Tinian with first class amenities including the 18-hole championship golf course, 50,000 square feet Las Vegas-style casino, water theme park, convention center, condominium units and a shopping center.

Mr. Guerrero has repeatedly assured the public that his project, Tinian Marine Resort, will push through despite repeated delays on the construction since 1998. He said membership fees amounting to $150 million will be sold by the resort to Japanese investors.

In fact, he announced that the resort’s design has been finalized with Tom Agawa, principal architect from Excel Design. BTN, and Associates of Hawaii has been commissioned to handle the construction management. Since then, nothing has been heard about the grand plan has remained a plan.

According to the complaint, Mr. Guerrero issued a promissory note on December 7, 1990 for the repayment of $53 million to the Highness Marianas, Ltd., a CNMI Corp., which has main office in Tokyo, Highness Kosan Company Inc., on June 18, 1994 plus interest.
On June 16, 1994, Mr. Guerrero issued a replacement promissory note to the same company which amended the earlier document emphasizing the payment of principal amount plus eight percent interest starting June 19, 1991 until December 30, 1994.

The loan agreement was executed and signed by Tamotsu Tominaga, president of Highness Marianas Ltd., representing the Japanese firm Highness Kosan Company, Inc., and Mr. Guerrero as president of Taga Beach Resort, Ltd. and Tinian Marine Resort, Ltd.

To secure repayment of the loan, Mr. Guerrero agreed to grant mortgage on the 20 leases of land on Tinian, according to the loan agreement. Both Taga Beach and Tinian Marine, to which the ex-MVA board chair is president, guaranteed the full and prompt payment of Mr. Guerrero’s debt.

The loans were guaranteed by Highness Kosan Co. Ltd. to Mitsui Trust & Banking Co. Ltd. and the Long-Term Credit Bank of Japan, Ltd., both Japanese corporations. The Mitsui Trust & Banking Co., Ltd. is now known as Chuo Mitsui Trust & Banking Co. Ltd.

On Aug. 16, 1999, The Long-Term Credit Bank of Japan Ltd., assigned its interest to The Resolution and Collection Corp.