DPL: Bid at your own risk

The Department of Public Lands has detailed a request for bids for lands currently held by Mariana Resort and Spa in Marpi that notes the “perceived right” of the hotel owners for an extended lease, and a requirement that bidders must have plans to use existing facilities and retain its employees.

“In the interest of full disclosure, Kan Pacific Saipan, Ltd., whose lease expires on April 30, 2018, has asserted a perceived right to renew its lease for an additional 40 year period,” DPL states in its request for proposal package.

However, DPL states they dispute this interpretation of the present lease.

“A lease on those terms would be void under Commonwealth law,” DPL states. “DPL will defend and aggressively enforce its position; however, proposers bid at their own risk.”

All leases of five hectares or more of public lands and any lease extensions or renewals require legislative approval. DPL will recommend to lawmakers the approval of a lease to the winning bidder.

DPL, through the RFP, says their principal objective is to lease public lands and properties in Marpi to the most responsive firm capable of providing DPL with the highest financial return from the anticipated commercial use and development, with facilities beneficial to tourists and residents.

DPL notes that they will not consider offers to develop individual lots. However, they may consider separate proposals to lease and develop properties east of the main road—or inland—and west of the main road, which is oceanside.

DPL is proposing to grant an initial 25-year lease to a successful bidder on a “triple net” basis, the RFP states. It adds that an additional 15 years is conditioned on the performance of the lessee.

DPL says bidders “must”—under a business development plan—includes a “plan to continue operating the existing facilities” and for “continuing the employment of personnel operating at existing facilities,” among others.

DPL says they will evaluate a package based on its completeness along the following criteria:

-40 percent on lease revenues to DPL. Additional consideration will be given to firms that propose to pay rent in excess of the minimum rates and the total dollars paid to DPL, the RFP states.

-25 percent on the amount of investment proposed. “The amount of funds to be invested as proposed is a major factor that will be considered and will be evaluated in comparison with overall merit of proposals.”

-25 percent on financial capability and evidence of availability of funds and readiness to begin construction.

-10 percent on improvement and or development plans, which includes proposed public benefits.

DPL says it will reserve the right to reject any or all proposals and to “waive any imperfection in any proposal” if it finds that to do so would be in the best interest of DPL and its beneficiaries.

The RFP states that the secretary of Public Lands, with input from a review committee constituting DPL staff, will make the final selection.

In the event the Top 2 most responsive and responsible proposals are similarly beneficial to DPL, both firms may be included on DPL’s shortlist of candidates and interviews may be conducted with each firm to determine a final selection.

The deadline for bids is on May 27, 2016, by 4:30pm.