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CDA approves LaoLao resort tax relief
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Posted on Aug 01 2008
The multi-million dollar construction project at the LaoLao Bay Golf Resort won a major financial boost Friday after the Commonwealth Development Authority approved a plan to provide up to $18 million in tax relief for the project.
After more than three hours of debate over the scope of the plan and the resort’s funding projections, the CDA board voted unanimously in favor of it but granted significantly less than the $27.7 million tax break the resort had requested.
A key issue in the board’s debate over the plan, according to board chair Pedro Itibus, was that the resort had requested the tax relief measures to apply for 25 years, the longest possible under local law, while an analysis by taxation officials suggested the board could consider a shorter timeframe of 15 years, the length on which its members later agreed.
The resort’s director and general manager, Tetsuya Matsunaga, praised the board’s decision.
“Since we belong to the tourism industry, we will continue to do our best together with our group to reboot the CNMI’s economy,” he said. “We had plenty of positive and supportive comments from the public and we know that without them, we couldn’t have gotten our application granted. Now it is time for us, after 14 years in the CNMI to move to the next stage.”
The resort broke ground earlier this year on a $68.8 million golf hotel—or “Golftel,” a complex with condominium-style apartments for golf tourists—and has since completed laying its foundation while the project’s managers push ahead with expanding the nearby clubhouse and restaurant. In addition, the resort has plans for a teahouse and villas to cater to its high-end clientele, according to construction officials.
According to a report issued by the resort, the CNMI stands to see an estimated $387 million worth of direct and indirect economic benefits after the project’s completion.
