‘DPL’s new policy akin to economic recklessness’

“What DPL is doing now is a gamble. No pun intended.”

This was the statement given by Hotel Association of the Northern Mariana Islands chair Gloria Cavanagh at the Hyatt Regency Saipan yesterday regarding the recent issues some of its members are having with the Department of Public Lands.

Speaking before members of the Rotary Club of Saipan, Cavanagh said that DPL’s decision to apply to expiring leases the new policy of conducting global solicitation shocked Mariana Resort and Spa. Cavanagh is the general manager of the resort.

She cited part of DPL’s letter, which said “this will be the rule for any expiring leases with our government.”

“This means a policy that affects all five of our members. The risk of these big five leaving because of this policy is akin to economic recklessness,” Cavanagh said.

Aside from Mariana Resort, Kanoa Resort, Fiesta Resort and Spa, Pacific Islands Club Saipan, and Hyatt Regency Saipan, whose leases are expiring within three to 10 years from now, also received a letter from DPL regarding their expression of interest to extend their current leasehold.

“HANMI feels that the definition of ‘best use’ has to include stability, longevity, reliability, loyalty, and certainty,” Cavanagh said.

Cavanagh said that HANMI doesn’t see the point of forcing the closure of an establishment to replace it with a new one.

“We believe it is in the best interest of the CNMI for both our long-term investors, Kanoa, Fiesta, PIC, Hyatt and Mariana Resort and the new long-term investor to both operate, both pay taxes, both pay lease rental, and both employ local people,” Cavanagh said.

“We see no legitimate or useful purpose to force the closure of one to replace it with another,” she added.

Cavanagh pointed out that the community should remember history and look at the “scars” left by closed establishments such as garment factories, a mall, and other hotels.

“If DPL is allowed to take away all five of us and this doesn’t pan out, and this gamble we lose, what kind of scar are we going to have?” Cavanagh asked.

According to her, they also sent a letter to Gov. Eloy S. Inos before he went on leave. The letter, dated July 2, requested Inos “to revisit the position taken by the DPL secretary and thereupon to reconsider the same.”

In a letter to Mariana Resort dated July 6, DPL said it “will honor the agreement and Kan Pacific’s rights under the lease until its expiration. DPL is not seeking to terminate the lease early or to directly manage the facilities… However, please note that at the end of the lease term the leased premises revert to DPL and all improvements become the property of DPL.”

The letter also added that “DPL is not opposed to entering into a new lease with Kan Pacific, if after a review and comparison of competing proposals in response to an RFP for the Marpi properties, Kan Pacific’s proposal is determined to be the most beneficial to DPL and the CNMI.”