CDA records 7 active QC recipients

The Commonwealth Development Authority on Friday disclosed that the CNMI Qualifying Certificate program has a total of seven active recipients to date.

CDA economic development analyst Carline B. Sablan said 13 companies were issued qualifying certificates since the inception of the tax incentive program in 2000.

There were three companies that were granted the tax break in 2002: SandCastle Saipan on Jan. 11; Tinian Dynasty Casino & Hotel, on Aug. 7; and Hard Rock Café, Sept. 20.

CDA noted only one active QC recipient in the second year of the program: Tony Roma’s & Caprissiosa, which got its QC on May 7, 2003.

Still receiving benefits from the program are Saipan World Resort, which got the certificate in 2005, and Bridge Capital LLC, which got it in November 2006.

Saipan Laulau Development Inc., the investor behind the $70 million Laolao Resort project, was the last firm granted a qualifying certificate on Sept. 26 last year.

A qualifying certificate was issued to We Manage Call Inc. for a proposed call center business in November 2005 but plans did not push through. The company cited the uncertainties of federalization, the minimum wage hike, and economic status of the island.

A proposed business must start in two years as granted by the qualifying certificate and, unless the firm requests an extension or renewal, the certificate is considered in default, invalid or inactive upon the expiration of two years.

Saipan Tribune learned that QC recipients are classified inactive if they back out from infusing the promised investments, do not agree to the conditions and requirements, or surrender the certificate.

Companies that belong to this category include Spring Water Inc., Hyatt Regency Saipan, Rota Resort & Country Club, Dai-ichi Hotel, and Saipan World Resort.

Spring Water Inc. was granted the QC benefits in October 2002 for its promised $1.6 million investment on Rota while Hyatt Regency did not agree to certain conditions of the QC for its proposed $20.5 million expansion and renovation project.

A qualifying certificate was also issued to SNM Corp. of the Rota Resort & Country Club, which surrendered the certificate due to a change in its management. Rota Resort’s promised investment amounted to $93 million.

Tax breaks granted to Asia Pacific Hotels Inc. dba Dai-Ichi Hotel Saipan Beach on March 18, 2004, is also considered inactive as the company did not accept the QC indicating an investment proposal of $32.5 million.