CCC will entertain IPI settlement offer if it pays $18.6M 2023 fees

The Commonwealth Casino Commission is willing to entertain a “reasonable” settlement offer from Imperial Pacific International (CNMI) LLC as long as the $18.6 million in fees for 2023 are paid within the 30-day notice given to IPI to pay the $62 million license fees it owes the CNMI government in total.

This was learned from CCC board chair Edward C. DeLeon Guerrero, who told IPI director Howyo Chi in a letter last Friday that, as he had stated in his previous communications with IPI, the commission is willing to accept a reasonable settlement offer as long as the 2023 casino license fee in the amount of $15,502,570 and the 2023 annual casino regulatory fee in the amount $3.15 million are paid upfront prior to or as part of the settlement agreement.

DeLeon Guerrero wrote the letter as a follow-up on the commission’s notice to IPI, which Chi received last Nov. 30, to pay the government within 30 days the $62 million total amount of casino license fees that remain unpaid in the last four years.

“If IPI is unable to make any payment within the identified deadline, I recommend that you immediately provide the commission a settlement offer acceptable to the Commonwealth,” DeLeon Guerrero told Chi.

Chi told Saipan Tribune on Tuesday that they are still working on a response to the offer.

At the CCC board meeting last Thursday, Chi said that IPI’s previous proposal still stands: Payment of $5 million a year for four years to the CNMI government for the casino license fee and $1 million per year for four years to the CCC for the regulatory fee, in exchange for getting back its suspended casino license.

Chi said that CCC’s initial settlement offer—payment of the full $36 million but lose license exclusivity—was described by IPI as “completely in bad faith negotiation.”

DeLeon Guerrero said in the follow-up letter on Friday that if IPI pays the $18,677,570 total 2023 fees, they can immediately start working on the settlement agreement before the next CCC monthly board meeting on Dec. 28, 2023, just two days short of the 30-day deadline notice for IPI to pay in full the $62,010,280 annual license fees.

He reminded Chi that all amounts currently owed by IPI cannot be forgiven.

However, DeLeon Guerrero said a payment plan on the balance can be negotiated in the settlement agreement.

IPI also owes CCC $17,625,000 from outstanding casino regulatory fees, fines and penalties, and unpaid obligations per a previous stipulated resolution.

In short, IPI owes the CNMI a total of $79,625,000 from casino regulatory fees, regulatory fees, fines and unpaid obligations.

DeLeon Guerrero said there are other issues previously discussed that will also need to be included in the settlement agreement, including the lifting of the casino gaming license suspension, dismissal of pending CCC actions against IPI, construction assurance, waiver of casino license exclusivity, support for amendments to the casino license agreement and existing gaming statutes, and related matters.

He said the CCC obviously prefers that IPI pay in full all amounts due. However, if IPI believes it will not be able to perform and make good on its payment obligations, then the company has the duty to immediately submit a proposal to the commission and identify how it plans to meet its financial obligations.