Delay snags casino project

The new $150-million hotel and casino project on Tinian is now 30 days behind schedule due to a delay in the government permitting process.

Bridge Investment Group had planned to finish taking topographic pictures of the project site by February 2006, according to Phillip Mendiola-Long, the company’s vice president for CNMI operations.

He explained that the photographs of the 50,000-sq.m. property were needed for the architectural and engineering design of the hotel and casino. To get a clear line of sight and take the pictures, the investor’s contractor needs to clear some parts of the property.

Long, the guest speaker at yesterday’s Saipan Rotary Club meeting, said that the government has yet to issue a permit for the minor land clearing.

“We didn’t seek the administration’s assistance for permitting because we thought this was just a minor clearing. We only need to do this for shooting pictures of the topography. We intend to comply with the requirements for the major siting permit before we begin actual construction later this year,” Long said.

He expressed hope that the Division of Fish and Wildlife would complete its portion of the permitting process this week, so the Division of Environmental Quality could begin on its part.

He added that Bridge Investment was hoping that Taniguchi Ruth Associates, the contractor doing the architectural and engineering design, could make up for the delay.

The new 300-room hotel and casino will be built three miles south of Tinian Dynasty Hotel and Casino.

Long said the investment was expected to cost $150 million, but it could go up to $200 million should the investors proceed with expanding the project to include a water park and a golf course. Long said this would depend on the CNMI government’s qualifying certificate program.

Bridge Investment projects to add nearly $400,000 monthly revenues to the government in terms of gaming fees, which, when combined with the present casino operator, Tinian Dynasty Hotel Casino, would total $706,000 a month in government income.

The industry is projected to earn Tinian some $8.5 million revenue a year, or a 228-percent increase from the current level.

Overall, the Tinian tourism industry is projected to yield $92 million a year.

A total of 936 new Tinian jobs are expected to be created as a result of the new investment. Bridge Investment is looking at hiring 600 casino resort employees. The multiplier effect is seen to create the remaining 336 jobs.

Long said actual construction was expected to begin in September 2006. Bridge Investment is now negotiating with an off-island contractor, which Long described as the “fifth largest construction company in the world.”

A soft opening is slated for December 2007, to be followed by a grand opening in April 2008.