Previous Story
DPL gets Hyatt proposal but…
DPL still waiting for submission of missing docs
The Department of Public Lands has already received the official proposal packet from Hyatt Regency Saipan regarding their expiring public land lease, DPL disclosed yesterday.
In response to Saipan Tribune’s request for an update on the lease negotiations with Hyatt, Deveney Dela Cruz, special assistant to DPL Secretary Marianne Teregeyo-Concepcion, said that in order for DPL to start the negotiation process for a new lease agreement, they must first receive an official proposal from the current lessee. Dela Cruz said DPL only received an official proposal packet from Hyatt’s current lessee, Saipan Portopia Hotel Corp., last Oct 20, but the package was incomplete.
She said DPL met with Saipan Portopia and their lawyer, Stephen J. Nutting, last Nov. 5 to inform them of the missing documents.
“DPL is still awaiting the rest of their submission,” Dela Cruz said.
Last month, Gov. Ralph DLG Torres disclosed that the government is waiting for Hyatt’s official proposal.
Torres said that, for the purpose of the renewal process on any land lease agreement, especially in renewing 40-year leases, it would need to have an appraisal of the property. Then there is an official proposal on what the investor needs to do and how much investment it plans to put in.
To his understanding and based on the last information he received, the appraisal has been done, but not the official proposal on what Hyatt would be investing and how that investment would go through.
“I’ve said in the beginning since Day 1 that I would like to see Hyatt get the extension,” Torres said.
Hyatt’s 40-year public land lease will expire in December 2021. The land lease of Fiesta Resort & Spa Saipan, which is located adjacent to Hyatt, is supposed to expire in June 2021, but it just got a new 40-year lease.
The recent enactment of Public Law 20-84 increases the terms of public land leases up to 40 years, plus an extension of 15 years, for a total of 55 years. It also authorizes certain public land leases to be amended and extend existing lease terms up to 55 years.
The law gives DPL the authority to negotiate new public land leases to certain existing lessees under new terms and considerations even without publishing a request for proposal.
