Laolao Bay to submit new qualifying certificate application

Laolao Bay Golf Resort will resubmit its qualifying certificate application in coming days after withdrawing its original application last week, according to the company’s president Sun Don Jhung.

He said Laolao Bay decided to resubmit a new application for qualifying certificate to reflect the higher prices for materials it would use for its $68.8-million Golftel project, which broke ground last May 1.

“International prices of materials are increasing so we are [re]calculating all the cost of our construction and then we will submit a new and revised application for qualifying certificate to the Commonwealth Development Authority. We plan to do it in the next two weeks,” Jhung said in an interview during the groundbreaking ceremony.

The $68.8-million Golftel project of the Kumho Asiana-owned resort in Kagman will involve two phases.

The first phase will cost $54.2 million and involve the construction of two Golftel towers with 73 lodging units, five independent-structure golf villas, completion of the full facilities and services (fitness center, swimming pool and spa, banquet rooms, and snack bar), and extended clubhouse and the renovation of the original clubhouse.

Phase two of the project, which has a budget of $13.1 million, is compose of the construction of the third Golftel tower with 37 lodging units and two independent-structure golf villas.

Laolao Bay also plans renovate its Greg Norman-designed course and that is expected to cost another $1.5 million. The first phase is expected to be completed in 2009, while the second phase is scheduled to be finished in 2012.

The groundbreaking ceremony last May 1 was attended by no less than Kumho Resort president Bong Ku Kim, Gov. Benigno R. Fitial, Senate President Pete Reyes, House Speaker Arnold Palacios, Marianas Visitors Authority board chair Jerry Tan, Hotel Association of the Northern Mariana Islands chair Lynn A. Knight, Korea Association vice president Ty Yoon, and host of other VIPs from the government and private sector.

The qualifying certificate program was established on Dec. 1, 2000, with the enactment of Public Law 12-32, or the Investment Act of 2000. Under the program, tax benefits are given to entice businesses to put up new investments in the CNMI or to assist existing investors in expanding their operations.

According to a recent report by the CDA, the QC program has attracted 11 companies, produced immediate benefits of $28.12 million from capital expenditures, and generated a total of $100.59 million in taxes, local purchases, utility payments, and other community contributions over the seven years the program has been in place.