Kitami: We’re not in position to ask BS to look for other lands

Kan Pacific Saipan, Ltd. president Yoshiro Kitami said Marianas Resort & Spa doesn’t have the authority to ask Saipan casino licensee Best Sunshine International Ltd. to look for other public or private lands to build their $7.1-billion integrated resort project.

Speaking through interpreter Hiroko Tenorio, Kitami said he is not in the position to say that a business should go to a certain place. He, however, reiterated the family owned company’s belief that Mariana Resort and Best Sunshine can co-existence as responsible business entities that hire local residents, pay taxes, and contribute to the CNMI economy.

Kitami, who was in the Senate yesterday to receive yet another commemorative resolution, said Kan Pacific and Mariana Resort is close to his heart as his father started the business and he himself was born and raised on Saipan.

Also present during the presentation of the Senate commemorative resolution were Kitami’s uncle and former Mariana Resort president Naoki, general manager Gloria Cavanagh, and other staff of the Marpi hotel.

In her statement to the Senate, Cavanagh reiterated what Mariana Resort said in its open letter to the CNMI government.

“We believe it is in the best interest of the CNMI for both Mariana Resort & Spa and the casino licensee to both operate, both pay taxes, and both pay lease rental. There are other lands available for the casino resort. We see no legitimate or useful purpose to force the closure of Mariana Resort.”

She added that Kan Pacific has committed to the CNMI and is looking forward to resuming talks with the Department of Public Lands for another 40-year lease.

Cavanagh, in an interview with reporters following the presentation, said Mariana Resort’s land lease extension proposal to Public Lands includes the construction of high-end rooms that during the offseason could fetch $250 a night, as well as two more restaurants.

Senate President Ralph Torres (R-Saipan) assured Kan Pacific that the CNMI government will honor its land lease agreement with Marianas Resort, but stopped short of guaranteeing that its request for a lease extension will move forward.

“No one’s going to take [them] out. They have a contract for 3 1/2 more years. The government should respect that contract. Nobody is chasing anybody away. Best Sunshine has an agreement to build a resort of 2,000 rooms. They’re asking RFP [request for proposals] on all public lands that is available and that is expected for the company to do. But in terms of the government chasing someone out, I don’t believe that’s my position. They have 3 1/2 years and we’re here to support the company as what they ask for.”

As for the lease extension, Torres said he would support Mariana Resort if the proposal is right.

“I’m in support of Mariana Resort’s proposal if it’s in the best interest of the community and the businesses. Their land lease is for 40 years so we’re going to honor that contract. We will support and assist Mariana Resort from now until the end of their contract and see if we can work something out after that.”

Mariana Resort is pursuing at least a $30-million added investment for the initial 25-year renewal of its public land lease that’s expiring in April 2018. It has an option for another 15 years.

Part of that additional investment is the addition of 100 executive rooms. Currently, Mariana Resort has 74 hotel rooms and 50 individual cottages.

Its talks with Public Lands on the 25-year extension apparently hit a snag as reports surfaced that Hong Kong-based Best Sunshine is interested in the public land currently being leased by Marianas Resort. Best Sunshine is planning to build a $7.1-billion integrated casino resort on Saipan.