House OKs Sea Touch land lease

The House of Representatives passed Friday a proposed submerged lands lease agreement between the Department of Lands and Natural Resources and Sea Touch Saipan LLC for a $1.125-million shark and stingray marine park project.

On a vote of 16-3 in favor of approving the deal, House Bill 18-198, House Substitute 1, authored by Speaker Joseph P. Deleon Guerrero (Ind-Saipan) now heads to the Senate.

Baldyga Group special projects director Troy Williams attended Friday’s marathon session and said he’s very excited that the House finally passed the bill.

“We’re very much looking forward to the Senate and the governor passing it for final approval so we can begin operations of Sea Touch. We believe Sea Touch is an operation that will differentiate the Saipan market from other markets in the region, including Guam. We’re very much looking forward to being in business in the CNMI—hiring people and paying our taxes.”

Williams, whose Baldyga groups owns Sea Touch, said their company has already spend $275,000 on the project and are planning to hire 15 to 20 people.

“We should be up and running in six months after approval. We just need to go through the Senate process and we will be waiting for the decision of the governor. We believe it’s favorable. Six months from that date we will be in full swing.”

Williams said the Sea Touch investment is another sign that businesses are very upbeat on the islands’ future as a tourist destination.

“We’re confident that this current administration is doing a great job of bringing people to the islands and the numbers are on the rise. We see the Chinese numbers rising. We’ve met with several Chinese travel agents as well as Japanese travel agents, including one of their biggest wholesalers. In fact, you could go today in their desk and you could see it in their guidebook already. That’s how excited they are about it. They are pre-announcing it…and they really look forward to sending more travel packages here,” he added.

The House’s lengthy deliberations on the bill appeared to hit an impasse when Deleon Guerrero introduced an amendment changing the coordinates of Sea Touch’s proposed project. But after some clarifications, the legislation passed with only three dissentions: Vice Speaker Francisco Dela Cruz (Ind-Saipan) and Reps. Ramon Tebuteb (Ind-Saipan) and Edmund Villagomez (Ind-Saipan).

“I’m asking the members to please give the project a chance. It is a unique type of development that will enhance our destination. We’ve been talking about destination enhancement. Palau has its dolphin facility. Guam has its aquarium. We don’t have anything but I can’t say this enough that I think the developer has been patient. It’s been two years already. …They’re at the point now where we either accept it or they will move on. That’s my worry that we won’t benefit from this,” said Deleon Guerrero during the bill’s deliberations.

He added the Sea Touch project’s value goes beyond the $12,000 a year submerged land lease payment.

“I don’t know how to quantify the value of how many tourists it will bring in and those tourists will leave the island and spread by word of mouth what our attractions here are. I don’t even know how to quantify that in terms of monetary value. But I do believe it will benefit us in many ways even looking at it through public education.”

Sea Touch plans to build temporary holding pens for the sharks and stingrays, and a floating walkway on the shallow waters fronting the hotel.

The amended bill the House passed corrected the proposed submerged land lease to 1,481 square meters, from 4,575 square meters, located by the Fiesta Resort & Spa beachside in Garapan. The proposed lease is for $12,000 a year.

If approved by the Legislature, the lease would be for five years. The lease may be renewed for up to 20 more years, with each renewal term of up to five years. The amended bill that passed the House Friday also changed the coordinates from four geocoordinates to eight CNMI local grid coordinates.

Sea Touch agreement is also a potential landmark deal since it will be the first time the CNMI will be leasing its submerged lands.

In voting no to the bill, Tebuteb said he refuted William’s expert opinion that the proposed area for Sea Touch is devoid of a lot of fish.

“I’ve been fishing there the past 20 years so I know that place. So it’s a bit personal on top of those other things that we’ve sacrificed,” said Tebuteb.

Keoni Hosono, Power 99 DJ and IT staff, went to the House Friday to oppose the project.

“I’m in favor of the idea but I’m opposed to the location they’ve selected. They’re planning to build it right on the beachfront of Fiesta Resort & Spa Saipan. The location that they’ve chosen is traditional ground for the Carolinians and the Chamorros. …These are fishing grounds and that’s the place where our people landed. It’s not just the place where we sought shelter. It was also the best location where our navigators would stand there and look at the stars and clouds and do their calculations. It’s a significant spot because that’s where they determined whether it’s safe to navigate out or not.”