CDA recommends revocation of Tinian Dynasty QC

The Commonwealth Development Authority wants the qualifying certificate it issued to Tinian Dynasty Hotel & Casino revoked after the hotel was found not complying with the program’s requirements, including “tax issues,” environmental concerns, and violations of the American Disabilities Act as stated in the approved certificate.

Saipan Tribune learned yesterday that the CDA recommendation was submitted to the governor on Dec. 22, 2008. He has 45 days—or up until Feb. 4—to approve or turn down CDA’s request. If the governor fails to act on the recommendation, it will be deemed disapproved.

In an interview yesterday with CDA economic development analyst Carline Sablan, she confirmed the agency’s recommendation to Gov. Benigno R. Fitial.

The CNMI QC program was established by law in December 2000. It was later amended to include a rollback provision that entitles existing tourism businesses on the islands to avail of the program, provided they pass the minimum requirement of $2 million investment and the business is in line with the tourism industry.

For Saipan, Hard Rock Café was accepted; Dynasty on Tinian; and the Rota Casino.

Sablan disclosed the following abatements approved by CDA for Dynasty’s QC: 100 percent abatement of BGRT in years 1-3; 50 percent abatement of BGRT in years 4-7; and 30 percent abatement of BGRT in years 8-10.

Dynasty was also entitled an abatement in its bar tax—50 percent in year 1-7 and 30 percent abatement in bar tax in years 8-10.

However, Sablan emphasized that the above benefits do not become official until CDA issues a “compliance certificate” to the beneficiary.

“To date, none of them are official because CDA did not issue a compliance certificate to Dynasty…due to the reason that they did not comply with the requirements of the provisional QC we granted,” she explained, declining to elaborate on Dynasty’s noncompliance with “tax issues.”

Sablan said the company was given the opportunity to ask for an administrative hearing but did not do so.

“All our beneficiaries are fully aware of their status and prior to this recommendation for revocation, we informed them,” she said.

The CDA official admitted that Dynasty has not been in compliance for many years. However, it was only this time that CDA finally acted to push the QC’s revocation.

As procedure, CDA handed out non-compliance forms to different government agencies, which report to CDA whether the QC beneficiaries are in good standing or not. If they’re not, the agency works with the QC beneficiary and asks them to work on the concerns.

A beneficiary needs to comply with applicable U.S, and CNMI laws as well as each agency’s rules and regulations.

Sablan said when a beneficiary’s QC is revoked, this is classified as an inactive qualifying certificate.

Tinian Dynasty Hotel & Casino officials earlier admitted that some Korean companies had expressed interest in acquiring the facility but vehemently denied that there are concrete “buyout negotiations.”

Dynasty is the sole local revenue source of Tinian that remits a portion of its revenue to the Tinian Gaming Commission to pay for the salary of local employees in the municipality. The business was opened in 1998.

Early this month, Tinian Local Delegation chair Sen. Joseph Mendiola revealed that local leaders will ask Dynasty officials to a meeting on the current status of the business.