Deleon Guerrero: IPI, like other businesses, is suffering

Like other businesses on the islands, casino operator Imperial Pacific International (CNMI) LLC, too, is suffering.

Former Commonwealth Casino Commission executive director Edward C. Deleon Guerrero gave this response to Rep. Janet Maratita’s (R-Saipan) question at a House of Representatives session last week on what he thinks is the biggest obstacle for the casino industry to thrive in the CNMI. Deleon Guerrero, at the time, was being probed as a nominee to become a member of the CCC.

“One of the greatest obstacles that they’re [IPI] facing right now…is the COVID-19, when everything is shut down. No one is allowed to enter or exit. They are completely dependent on incoming tourists, or their customer, to succeed. That’s not going to be possible until such time that the Commonwealth feels that it is safe to open the borders freely,” Deleon Guerrero said.

Outside the pandemic, IPI is also facing problems related to labor. “They are facing external problems in reference to accessing skilled labor. There is not enough local skilled labor, based on their entire review, more so because this construction is probably one of the highest quality construction I’ve seen in our part of the world. They needed access to skilled labor,” he added.

Based on the casino license agreement, IPI still has to complete the initial gaming facility, with its 329-room luxury hotel, among other components, by Feb. 28, 2021. Phase 1, which would create the integrated resort, with 2,004 hotel guest rooms, among others, is supposed to be completed in 2023 but has yet to begin.

“This is a business. They are suffering too, but I believe the owners are still committed to finishing it,” he added. “I think what we need right now is a little patience and we don’t jump the gun. [That] we don’t [have a] temper tantrum, and that we need to have consistency. We need to have a forward-looking vision, and we need to instill hope, not just for the Commonwealth citizens, but even for investors.”

For the casino industry to succeed in the CNMI, Deleon Guerrero proposed that the Commonwealth examine how best it can work with the U.S. Congress to look at the external constraints that’s affecting every business on the island.

Deliverables expected on both sides
Based on CCC’s discussion with IPI’s major shareholders, the lone casino licensee wants to move forward to Phase 1, but they have no land. IPI has asked for help in getting land.

“If you ask me…what [is] holding it up…I’m hearing from the horse’s mouth [that] they want the CNMI to keep its part of the promise,” Deleon Guerrero said.

He added that the Commonwealth needs to reexamine the deliverables expected on both sides. Just as IPI is expected to follow through on its part of the casino license agreement, the CNMI government, too, needs to follow through on what it promised.

“I don’t think we need to renegotiate the license agreement. I think we need to fully understand content. Understand that this require mutual deliverables, that both sides need to keep their promises,” he said, “that for policymakers, we need to focus more on hope and recovery, and move forward.”

CCC to impose sanctions
According to Deleon Guerrero, violations should not equate to the death of the casino industry. The focus should be on compliance, but CCC will impose sanctions in cases of violations, he added.

He pointed out that the industry has bolstered the Commonwealth economy significantly, with the service industries having moved up in the last two or three years and the real estate value on the islands has even gone up.

The former CCC executive director stressed that it is best if there is a mutual understanding of focus on compliance, to understand, follow, and push through with following the rules. If the rules don’t get followed, he said that “perhaps we may have to do the ultimate” but, at the moment, “there are still reasons to believe that this company can still fulfill what is required of the Casino License Agreement.”

“There’s a tremendous amount of good events that have happened,” he added. “I think we should keep those in mind as we use them to drive us forward.” In matters of IPI violations, he said that the CCC will be there to impose whatever sanction is necessary.

The Committee on Judiciary and Governmental Operations of the Saipan & Northern Islands Legislative Delegation last week has endorsed Deleon Guerrero’s confirmation, along with the two other nominees, former House speaker Rafael S. Demapan and former Zoning board chair Mariano Taitano.

The committee recommendation is expected to be discussed at the SNILD session today, 10am, at the House chamber on Capital Hill.