DPL intends to lease Tinian land to casino-resort investor

Heeding Tinian leaders’ recommendation last week, the Department of Public Lands said it intends to lease public lands facing Tinian’s Matua Bay or the area called Puntan Diablo to another investor group that CNMI officials said yesterday is planning to build a casino resort and golf course. The Chinese investor group is Capital Equity Legal Group Shanghai Firm.

Lt. Gov. Jude U. Hofschneider said last night that based on “preliminary information,” the investor plans to build a “golf course, hotel resort, and casino.”

“More details are forthcoming as they continue to meet with the government,” Hofschneider told Saipan Tribune.

Sen. Frank Cruz (R-Tinian) echoed Hofschneider’s statement that the investor has yet to present its investment plan but the group is interested in a “world-class golf course, resort and gaming facilities according to their letter to DPL secretary.”

Tinian Mayor Ramon Dela Cruz also said it’s going to be a hotel-casino and golf course, along with several amenities. He said a business plan is expected to be submitted soon.

DPL Secretary Pete A. Tenorio, in a letter to Coonie Zhu of Capital Equity Legal Group Shanghai Firm, said the department intends to lease to the firm and will eventually enter into a lease agreement with them provided they submit certain requirements.

Besides general information, the company is required to submit to DPL within 30 to 45 days a development plan, business plan, time schedule of completion of project; amount of investment proposed; and financial capability; overview, qualifications and experience and labor requirements.

DPL also requires the investors to pay in full a nonrefundable application fee of $1,250 for public land smaller than 1 hectare, or $2,500 for public land larger than 1 hectare or for a proposed investment of $500,000 or more.

“Upon receiving notification of the Secretary of DPL’s approval, the applicant will be required to do the following, with all costs to be paid by the applicant: Secure and submit to DPL an approved survey plan for the site. Survey work must be coordinated with the DPL Planning Division. Secure and submit to DPL an appraisal report prepared by an independent certified appraiser showing the fair market value,” Tenorio said.

DPL will review the submissions before deciding whether to go ahead with the lease or not. If an agreement is reached, a draft lease will be submitted to the Legislature for approval.

The lease provision will be for 25 years, with an option to extend it for an additional 15 years or a total of 40 years.

The site being considered is the same spot formerly leased by Marianas Resort Development Co. for its Pulan Hotel project. It is located on the southwest side of Tinian, between Lasarino and Puntan Diablo.

Currently, Tinian Dynasty Hotel and Casino on Tinian is the only operating casino in the CNMI.