BSI signs lease for Garapan lot

Saipan casino developer Best Sunshine International, Ltd. inked yesterday a lease deal with the government, through the Department of Public Lands, for a 19,154-square-meter public land in Garapan.

According to DPL Secretary Pete A. Tenorio, the initial appraised value of the public land was $901,000, but Best Sunshine will lease it for $5 million, about five times the land’s original appraised value.

The area was formerly known as “Samoan Housing Area.”

Mark Brown, CEO of Best Sunshine, shakes hand with DPL Secretary Pete A. Tenorio after presenting him with a check for $500,000 at the Office of the Governor conference room. Behind them is Lt. Gov. Ralph Torres and lawmakers. (Joel D. Pinaroc)

The security deposit is now being required of new investors, Tenorio said.

He also said the advance payment of $250,000 or 5 percent of the value, will be the rental payment for the first five years.

The advance payment is a “unique” arrangement that DPL has with Best Sunshine, Tenorio said.

At the end of the first five years, and subsequent two- to five-year periods, the land will be appraised and the new rental will apply, Tenorio said.

The area will be used for a 5-star hotel and casino that Best Sunshine will build.

Projections

Tenorio said the company is anticipating to invest $400 million on the 250-room, 5-star hotel that will have a casino, restaurant, nightclubs, and other facilities.

The official said another “unique” arrangement with Best Sunshine is that on the 16th year, business gross receipts will apply as rental, and that business gross revenue will include the casino activities’ total income and businesses conducted not only on the public land but also on businesses conducted on private land as well.

With this arrangement, Tenorio said from year 16 to 25, the estimated rental income, based on business gross of the company, could be as much as $16 million.

After 40 years, the revenue to the DPL could be as much as $84 million, Tenorio projected.

In addition, to the 19,154-square-meter public land, Best Sunshine also has another private land lease for 20,000 square meters for the hotel casino.

Mark Brown, CEO of Best Sunshine, said the company “will work full steam ahead.”

He said there is only one more obstacle ahead and it is the major siting permit that Best Sunshine has to secure.

But the executive said “everything is in place,” and that the site has already been cleared.

Brown said Best Sunshine will “reveal” how the hotel will look like in a zoning board hearing later today.