Oversight hearing as lawmakers rally behind Mariana Resort

The House Natural Resources Committee said yesterday an oversight hearing on the status of expiring public land leases is forthcoming, as some lawmakers expressed disappointment with what they claim are plans to force out from its still valid leased land one of the few major remaining Japanese investors in the CNMI—the owner of Mariana Resort & Spa—in favor of Saipan casino developer Best Sunshine International Ltd.

Natural Resources Committee chair Anthony Benavente (Ind-Saipan) said it is “unacceptable” that Mariana Resort & Spa owner Kan Pacific Saipan Ltd. is being chased away even if its land lease is not up until April 2018.

“Here we are already giving away something, the lease term is not even up and eventually we’re like chasing this investor away. …Why are we doing this? There are other land areas that maybe Best Sunshine can utilize,” Benavente told Saipan Tribune yesterday.

One of which, he said, is the almost 10 hectares of public lands in Marpi that the Department of Public Lands is offering E Land’s Micronesia Resort Inc.

Benavente said instead of giving such public lands again to E Land’s MRI, which has not even renovated the former The Palms Resort, not completed the Coral Ocean Point renovation and other projects, the land should be offered to Best Sunshine.

Benavente said other businesses, such as Delta Airlines, which brings in Japanese tourists to the CNMI, could also pull out from the CNMI if Japanese investors such as Kan Pacific/Mariana Resort are treated badly.

Like other lawmakers, Benavente said DPL should consider first Mariana Resort’s proposed 25-year lease renewal before offering the land to Best Sunshine or other foreign investors.

Mariana Resort is proposing to invest an additional $30 million in its 25-year lease renewal plan.

Its owner, Kan Pacific, is the first major Japanese investor in the CNMI. Mariana Resort marked its 36th year in April this year, sticking with the CNMI through thick and thin and even as the Japanese tourism market is in crisis mode these days.

DPL Secretary Pete A. Tenorio said no decision has been made so far to refer any new lease for the Mariana Resort property to the Legislature, “nor an offer made yet to Best Sunshine for the land at Mariana Resort.”

Best Sunshine chief operating officer Terence Tay, however, sent another letter to DPL’s Tenorio, asking the department to expedite the review of its proposal to lease the Marpi public land under lease to Kan Pacific/Mariana Resort.

Sen. Paul Mangloa (Ind-Rota), in a letter yesterday to DPL’s Tenorio, said Best Sunshine’s request to expedite the review of its proposal to lease public land leased by Kan Pacific “raises great concern.”

Manglona said the community has trust and confidence in DPL “that it will do due diligence in reviewing and analyzing Best Sunshine’s proposed lease to safeguard and protect the interest” of CNMI people.

“Best Sunshine’s focus on the property leased to Kan Pacific must be discouraged and must be redirected to lease private land or unencumbered public land. Kan Pacific invested in the Commonwealth for more than three decades,” Manglona said.

Mariana Resort also has an 18-hole golf course, over 100 hotel rooms and cottages and other hotel amenities.

“The Commonwealth’s goal should be to maintain investors and diversify the tourism industry. Kan Pacific and other Japanese investors still bring in approximately 125,000 tourists from Japan,” Manglona said.

Bid out Marpi land

The senator said in the event that DPL finds Kan Pacific’s proposed new lease terms and conditions unsatisfactory, upon its current lease expiration in four years, then the best way to proceed is to solicit through an “open and competitive” bidding process for such public lands.

This takes into account the appraisal value of the existing developments.

Best Sunshine has an exclusive license to develop an integrated casino resort on Saipan for a total of 40 years – an initial 25-year lease with an option to extend by 15 years. It plans to invest $3.14 billion for the integrated resort but is challenged by a lack of lands to keep everything in one area.

Manglona suggests that DPL be assisted by consultants that are expert in casino operations.

“Such consultants may assist in pointing out issues that may arise decades from now,” he added.

Rep. George Camacho (R-Saipan), who represents precinct 4 that covers Marpi where Mariana Resort is located, said yesterday he has yet to decide on the best way to go with the Mariana Resort lease now that Best Sunshine is also interested in the property.

“The issue is we want to keep Marpi as pristine as we can. So do we keep Marianas Resort and give Best Sunshine the rest of Marpi? Or have Best Sunshine move in? Keeping the amount of land use in Marpi to a minimum?” Camacho said.

He, however, understands that Mariana Resort has been a “great asset” to the CNMI “so we must also consider their loyalties to the CNMI.”

“Things should become clearer soon when we see what each investor has to offer Precinct 4 and the CNMI. Of course, we shall go with the direction that will give us the most return and shall best serve our people,” Camacho added.

When the Natural Resources Committee holds an oversight hearing, it can subpoena DPL and other entities and ask details about the status of public land leases.