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CDA approves modifications to Ocean Vista’s QC
The Commonwealth Development Authority board has denied Ocean Vista Resort’s request for excise tax relief but approved other modifications to the resort’s qualifying certificate.
In their original qualifying certificate application, the resort proposed a tax relief on excise tax during the resort’s construction and operation period, said CDA executive director Manuel Sablan.
This time around they asked for excise tax relief during the construction period.
The board again rejected this.
“One of the reasons for that is to encourage them basically to the maximum extent possible [to] procure goods from local vendors,” Sablan explained.
The amendments to the QC are as follows:
n The board voted to amend the QC to include a 100 percent abatement of the Developer Infrastructure Tax.
n CDA voted to cap this tax benefit at $771,000. This tax benefit is in addition to or on top of the existing $3.4 million benefit cap on the business gross revenue and bar taxes. Ocean Vista would be responsibly for any tax liability above the cap.
n CDA said the resort must meet all requirements of the Building Safety Office, including submission of plans, cost estimates, report on final project costs, payment of applicable fees, among others.
n CDA said the resort must submit to CDA the final amount of the developer infrastructure tax to be certified by the Building Safety Office.
All other QC requirements remain.
The CDA voted to memorialize their vote in a resolution for Gov. Eloy S. Inos’ approval.
In April, the CDA board approved Ocean Vista Resort’s qualifying certificate with a requirement that it doles out $150,000 in public contributions every year.
One requirement is a “cultural historical preservation aspect” to be included in their project. A second stipulation would be an annual $150,00 public contribution to be directed to CDA for the agency’s sole intent to provide more services to the Commonwealth. A third stipulation would be 50 percent abatement of the business gross revenue tax and bar tax, with a benefit cap not to exceed $3.4 million or 10 years regardless of the year of bid,
Ocean Vista Resort proposes to build a reported $46-million, 144-room hotel on Capital Hill.
