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2 NEW HOTELS INSTEAD OF 1 COULD RISE IN MARPI
Tan Holdings, Sunshine 100 pull out from Marpi project
DPL offers public land to E Land’s MRI as second short-listed firm in RFP
Two new multimillion hotels instead of just one are expected to rise in Marpi—one on public land and one on private land. This, after the joint venture of Tan Holdings and Sunshine 100 withdrew its interest from leasing almost 10 hectares of public lands in Marpi to build a hotel on private land instead, therefore freeing up public property that the Department of Public Lands hopes would be developed by a firm under the South Korea giant E Land Group of Companies.
E Land’s Micronesia Resort Inc. owns three hotels on Saipan, including Pacific Islands Club, Coral Ocean Point, and the former The Palms Resort that will reopen under the global Sheraton brand.
Tan Holdings and Sunshine 100 earlier planned to build a $133-million, 544-room hotel on public lands totaling 99,005 square meters in Marpi.
But the joint venture recently acquired a tract of private land, also in Marpi, where it plans to build a world-class hotel.
Tan Holdings’ Alex Sablan said yesterday the newly acquired private land is north of the Marianas Resort race track, and consists of 168,000 square meters.
Jerry Tan, president of Tan Holdings, said that having projects on both private and public lands is in the CNMI’s “best interest.”
“As there are also other interested bidders for the public land, we believe that it is in the best interest of the CNMI to have both projects, thereby enabling the CNMI to achieve maximum economic benefits,” Tan said in a May 14 letter to DPL Secretary Pete A. Tenorio.
On June 5, Tenorio offered the Marpi public lands to E Land’s MRI, being the second short-listed firm in connection with DPL’s request for proposal.
As of yesterday, Tenorio said DPL has yet to receive formal response from E Land’s MRI.
“They told us they will still have to consult with their principals in [South] Korea. We just sent the letter, so we are giving them time to think about it,” Tenorio told Saipan Tribune in a phone interview.
Tenorio said DPL’s evaluation committee has recommended MRI be offered the Marpi lease and that Gov. Eloy S. Inos approved the committee’s recommendation.
“Thus, DPL is officially notifying you of its decision. DPL and the governor appreciate your response on this offer at your earliest convenience so as to enable DPL to proceed with its alternative plan for the public land at Marpi should you reject the offer,” Tenorio said in his one-page letter Thursday to MRI chief operating officer Tae Ho Kim.
In January this year, DPL picked Tan Holdings over E Land’s MRI for a planned long-term lease of almost 10 hectares of public lands in Marpi.
Tan Holdings and E Land’s MRI bested three other investors that also submitted proposals.
In his letter last month, Tan thanked the DPL secretary and his staff for working with the joint venture “on drafting the terms and conditions of a public lease of Pau Pau Beach Resort.”
“However, after careful analysis, I regret to inform you that Tan Holdings and Sunshine 100 (joint venture) will be withdrawing from participation in this RFP…Our joint venture recently acquired a tract of private land in the CNMI. Management has decided to proceed with the utilization of private land for this proposed development project,” Tan told Tenorio in a one-page letter.
Tan also thanked DPL for giving the joint venture the opportunity to participate in the Marpi land RFP.
“With 32 years of presence in the CNMI, we remain fully committed to our continuing investment in this community. We look forward to future opportunities in working with your agency,” Tan added.
Tan Holdings is one of the largest private sector employers in the CNMI. It owns Fiesta Resort & Spa in Garapan and Kanoa Resort in Susupe, among other hotels, and other investments in the CNMI.
DPL is also in the process of signing a lease agreement with Hong Kong-based Honest Profit International to use public lands in San Antonio to build a new hotel with at least 200 rooms.
Moreover, two investor groups are vying for a license to exclusively develop an integrated casino resort on Saipan worth at least $2 billion and with at least 2,000 guest rooms.
The investors are Marianas Stars Entertainment Inc. and Best Sunshine International Ltd. As of today, there is no telling where either of them will put the integrated casino resort should they bag the exclusive Saipan casino license.
DFS Saipan Limited is also planning to build a 350-room luxury resort hotel near the former Samoan housing in Garapan.
Major development projects are on the pipeline with the local tourism-based economy surging after years of slump. U.S. Labor Secretary Thomas Perez’s recent announcement extending the CW program by five years or up to 2019 also ensures that the CNMI continues to have access to some 10,000 skilled and professional foreign workers to help sustain its economy.
