Let’s see what they’ve got

This letter is to disclose our response to RFP13- DPL-127, the request for proposal to lease three beachfront properties, one located in San Antonio and two located in Marpi, by two proponents, namely Future Enterprise Inc. in a joint venture with Reading Investment & Securities and Korea Asset Investment Corp. & Delta America Inc. in a joint venture with Joong Ang Corp.

When we prepared our response, we were confident that our proposal will be very competitive and had a good chance of being on the short list.

Now that the short list is publically known, our proposals are disclosed as follows:

Future Enterprises Inc. & Reading Investment and Securities and Korea Asset Investment Corp.:
Proposed project site: Lot 004 I 40, San Antonio
1) Invest a total of $150 million
2) Develop 250 rooms hotel/resort
3) Pay U.S. minimum wage ($7.25/hour)
4) Plan for Marriot Hotels to operate the hotel.
5) Proposed NMD benefits:
* Finance the construction of three covered gymnasium similar to the Mt. Carmel High School gym in three precincts (a cost of $350,000 per gym);
* Contribute $100,000 per year for training in tourism-related career for eligible NMDs;
* Provide NMDs discount on any goods and services provided by the hotel (25 percent discount); and
* Hire and maintain 40 to 60 percent NMD employees.
6) Proposed lease payments to DPL:
• 8 percent of appraisal value in fee simple interest OR 5 percent of gross income, whichever is greater;
• Advanced annual payments due for entire 25-year lease.

Delta America, Inc. and Joong Ang Corp.:
Proposed project site: Lot 003 A 11, Marpi
1) Invest $160 million
2) Develop 250 rooms hotel/resort
3) Pay U.S. minimum wage ($7.25 an hour)
4) Plan for Hilton Hotels as operator of the hotel
5) Proposed NMD benefits:
• Finance the construction of two covered gynasium;
• Contribute $100,000 a year for training in tourism-related career for eligible NMDs;
• Provide NMDs discount on any goods and services provided by the hotel (25 percent discount);
• Hire and maintain 40 to 60 percent NMD employees;
6) Proposed lease payments to DPL:
• 8 percent of appraisal value in fee simple interest or 5 percent of gross income, whichever is greater;
• Advanced annual payments due for entire 25-year lease.

Now that the shortlisted companies are in the final stage of negotiation with DPL, I hope that their proposals exceed our group’s proposal in terms of benefits to the NMDs, who are the rightful owners of all public lands in the CNMI.