Suwaso’s lease extension OK’d

After a disappointing three-hour delay and almost two hours of debate, the Senate and the House of Representatives approved last night Suwaso Corp.’s proposed 15-year extension on its 25-year public land lease for Coral Ocean Point Golf Resort.

Of the 27 of 29 lawmakers present at the joint session that lasted until 8pm, 24 voted “yes,” two “abstained,” and one voted “present” on Suwaso’s lease extension.

After a three-hour delay caused by the House leadership’s closed-door meeting came a lengthy debate among lawmakers on the ability of Suwaso Corp.—under a new ownership—to fulfill its contract obligation with the Department of Public Lands if and when the lease is extended.

Lawmakers took turns asking Suwaso Corp.’s new owners, attorney Vince Torres, and DPL Secretary Oscar M. Babauta about the new investors’ financial capability and their commitment to see the project through.

Japan-based investor Yusuke Fumoto, also a new co-owner of Suwaso Corp., along with other officials of the corporation, patiently waited in the gallery.

China-based investor Jia Tie Liang is the major financier of all infrastructure upgrades and improvements to Coral Ocean Point.

In the end, none of the lawmakers present in yesterday’s joint session opposed Suwaso Corp.’s lease extension.

Torres, in a brief interview with Saipan Tribune after the vote, said he’s “ready to work,” is “excited,” and thankful to the lawmakers.

“I am proud of our legislators who stood up and made a firm decision to support and encourage local investors along with foreign investors,” Torres said.

Yesterday’s joint session went ahead despite Gov. Benigno R. Fitial’s request to members of the House leadership to postpone a vote on the deal.

Senate President Paul Manglona (Ind-Rota) confirmed that as late as 5pm, House Speaker Eli Cabrera (Ind-Rota) had asked for additional days—up until Wednesday—to hold the joint session, but even members of the House leadership wanted to go ahead with the session.

The session was originally set for 2pm, but didn’t start until around 5:20pm because members of the House leadership didn’t come out of the speaker’s conference room until 5:15pm.

Rep. Joseph Palacios (R-Saipan), in an interview after last night’ session, said some members of the leadership raised a lot of concerns about Suwaso Corp.’s proposal during the three-hour closed-door meeting.

The approval of Suwaso’s extended lease will pave the way for a $22 million upgrade to Coral Ocean Point’s hotel and golf course facilities and the construction of 200 new guest rooms.

The new owners also promised to settle the previous owners’ debts to the CNMI government in tax arrears of almost $1 million, and with other CNMI private and public agencies using an immediate infusion of $7 million.

The House gallery was already packed with members of the public even before the scheduled 2pm session but the public was made to wait for three hours—without warning from the House leadership—for the session to start.

Kevin C. Guerrero, of Obyan, said he made time to attend the joint session to show his support to Suwaso Corp., which he said is now under new ownership and management that includes members of the community. He said officials need to make the right decision, especially during these tough times.

Guerrero said he’s disappointed that the House leadership made the public wait without giving courtesy or explanation.

“How can they help manage the economy when they can’t even manage their time?” he asked in an interview while waiting for the session to start.

Edward C. Deleon Guerrero, also a community member, cited three main reasons for supporting Suwaso’s lease extension, including the creation of employment opportunities, tourism destination enhancement, and increasing the CNMI’s revenue base.

Nine members of the community stood up and addressed the lawmakers during the public comment period. All of the nine asked lawmakers to approve Suwaso Corp.’s lease extension.

Rep. Edmund Villagomez (Cov-Saipan) was the only one among 29 total CNMI lawmakers who was off-island and was therefore excused from the joint session.

Rep. Stanley Torres (Ind-Rota) left the Legislature even before the House leadership ended their closed-door meeting.

Torres, in a phone interview, said he didn’t want to participate in the joint session when he said he found out that Suwaso still has an existing 15-year extension that was approved through a resolution approved in 1992.

“So why do we need to vote on a 15-year extension?” said Torres.

But DPL clarified during the joint session that there’s no existing 15-year lease.

Of the 27 lawmakers present at the joint session, Sen. Ralph Torres (R-Saipan) abstained from voting, citing conflict of interest because he’s the brother of one of the co-owners of Suwaso Corp.

Sen. Luis Crisostimo (Ind-Saipan), who was accused by Senate floor leader Pete Reyes (R-Saipan) of having a conflict of interest and shouldn’t have been allowed to vote, said he didn’t have a conflict of interest. But he voted “present.”

Rep. Ray Basa (Cov-Saipan) abstained from voting.

Besides Basa, other members of the House leadership raised the most questions and concerns about Suwaso Corp. But unlike Basa, they eventually voted “yes” on the lease extension. They included Vice Speaker Felicidad Ogumoro (Cov-Saipan) and Rep. Froilan Tenorio (Cov-Saipan).

The crowd in the gallery applauded when Joint Session Resolution 17-5, Draft 1—which extends Suwaso’s land lease by 15 years—passed by a vote of 24-0, with two abstentions, one voting “present,” and two absences.

The area covered by Suwaso Corp.’s lease is composed of 735,023 square meters in Unai Dangkulu where Coral Ocean Point is located.

Any lease and extension of lease of public land consisting of more than 5 hectares requires legislative approval.

The Senate and House also approved South Pacific Lumber’s proposed 15-year land lease extension for two of its leases in Lower Base.

Joint Session Resolution 17-4, Draft 1 passed by a vote of 24-0 with one abstention and four absences during the voting.

South Pacific Lumber’s two separate 25-year leases won’t expire until March 30, 2015 and Nov. 30, 2015.