Joint panel approves new COR lease

The House of Representatives and Senate held its first joint session yesterday morning where they unanimously voted in favor of passing a joint resolution approving the Coral Ocean Resort’s new lease with the Department of Public Lands.

Yesterday, 19 members of the House of Representatives and all nine members of the Senate voted in favor of passing Joint Session Resolution 23-2, a joint session resolution granting approval of the final draft lease agreement entered into between the Department of Public Lands and Suwaso Corp. dba Coral Ocean Resort.

The agreement is essentially another 40-year lease of the COR property with the option of a 15-year extension.

The version of the lease agreement passed yesterday includes a minor amendment in the benefit of $5,000 that Suwaso will pay annually to a scholarship program specifically for NMDs.

In a statement from DPL Secretary Teresita Santos, she said the approval of the new lease will ensure many different benefits for the CNMI community.

“Continuity of the COR operations, employment of our people, payment of Business Gross Revenue taxes that will contribute to the general fund for general appropriations coupled with public benefits to the general public such as environmental improvement and beautification projects, improvement at the Dandan Baseball Field, road project initiatives, scholarships and fundings to the Indigenous and Carolinian Affairs Office etc.,” she said.

Overall, Santos says the approval of the lease agreement is a win-win for both parties.

“DPL worked diligently through numerous meetings, discussions and negotiations to finalize this lease. Hence, DPL is delighted of the outcome as this is a win-win situation for all parties involved; DPL, COR, our stakeholders and the CNMI, and we look forward to continue working with COR to ensure the success of this lease,” she said.

Santos thanks all CNMI stakeholders who had a hand in the approval of this new lease agreement.

“Appreciation is extended to Senate President Edith DeLeon Guerrero and House Speaker Edmund Villagomez for calling on a joint session to act on the joint resolution and approval of the Coral Ocean Resort’s new lease with DPL. Additionally, DPL conveys gratitude to chairwoman Corina Magofna, who heads the Senate Committee on REDP, chairman Angelo Camacho who heads the House Committee on NR, members of the respective committees, and the Legislature as a whole for adopting the joint resolution and approving the COR’s new lease during today’s joint session. Moreover, DPL appreciates the unconditional support of honorable Gov. Palacios and Lt. Gov. Apatang on COR’s new lease and all the public comments that were received, in writing or oral, in favor of the same during the public hearings conducted in all three senatorial districts,” she said.

In an interview with Yunkyu “Ted” Jung, representative of Suwaso and E-Land Corp. for this project, he couldn’t contain his happiness following the approval of the lease agreement.

“This is a really great opportunity for us, they’re giving us a new 40 years plus 15 years. We’ve been working and waiting for the last 13 years since we took over Suwaso Corp. As we stated in our promise to the community, we will fulfill what we promised for the CNMI’s development, and we will contribute what we said we would for the public’s benefit. We are so grateful and cannot express how happy we are to have another 40 years with this community, we will be moving forward with the CNMI people. Occupancy is a concern and we understand that but right now, we aren’t really concerned about it. Since E-Land started in 2011, the market wasn’t really strong. But since E-Land started its business, [the number of] investors and tourists have increased since Kensington. We strongly believe this opportunity will [entice] other investors, agencies, airlines, and markets to put their attention to the CNMI. We hope that this new 40-year lease will increase tourism [to in turn entice] more investors,” he said.

Calvin Eunpyung Park, general manager of Coral Ocean Resort, said he is ready to get to work.

“I can there’s more responsibility because we are given another 40 years so we have to put in the hard work to make a profit which will in turn heavily benefit the local community,” he said.

According to Saipan Tribune archives, Suwaso was initially granted a 25-year land lease back in Feb. 10, 1986, with an option to extend it for 15 years, for a total of 40 years. After the initial lease expired in 2011, the company opted to avail of its 15-year extension. It is currently on its 38th year. The 15-year extension will expire in 2026.

Back in March, Suwaso proposed a new lease to allow COR to remain in operation for another 40 years.

Under the proposed new lease, Suwaso will pay an annual rate of 0.6% of the fair market value for the first 10 years and that will increase to 1.125% for the remaining term of the lease.

In addition, the lessee will pay a percentage of its business gross receipts and contribute over $1.8 million in public benefits. The public benefits include $600,000 for environmental improvements; $300,000 for beautification projects; $5,000 in annual student education assistance; $10,000 in annual promotion of local cultures; and $300,000 for playground equipment.

Under the environmental improvement projects, Suwaso will install streetlights and a new asphalt road for Agingan Beach, As Gonno Road, and Isley Field.

The company will also continue maintaining the Agingan Beach pavilions and restroom.

Suwaso also promises to provide financial assistance for eligible Northern Marianas Descent students.

The company also pledges to give $5,000 each year to the Indigenous Affairs Office and Carolinian Affairs Office to support activities to promote the Chamorro and Carolinian cultures, language, and arts.

Suwaso also pledges to buy, install, and maintain a new children’s park.

A total of $25 million will be invested by Suwaso for renovations of existing structures and new improvements on the Coral Ocean Resort premises. Santos said Suwaso plans to further repair and renovate existing buildings damaged by past super typhoons. She said new improvements include the construction of 200 rooms and villas, a Spanish garden, a golf starter building, beach club, new restaurant, and an upgraded swimming pool.