DeLeon Guerrero says legitimate investor willing to finish IPR, but…

Commonwealth Casino Commission board chair Edward C. DeLeon Guerrero disclosed yesterday that there is a legitimate investor who is willing to come in and put a substantial amount of money to finish the Imperial Pacific Resort in Garapan so that the casino industry can come back to life.

DeLeon Guerrero said this particular investor, however, is not interested in paying the fees that Saipan exclusive casino licensee, Imperial Pacific International (CNMI) LLC, owes to CCC and the CNMI government.

The investor believes that it’s IPI’s responsibility to pay those fees and if those are resolved, then the investor will clearly finish the building, said the chairman during the CCC board’s monthly meeting at the Springs Plaza Building in Gualo Rai.

CCC said IPI currently owes the CNMI government $62 million in casino license fees and owes CCC $14.5 million in regulatory fees.

DeLeon Guerrero noted that there is this issue of financial suitability.

“We cannot continue to make accommodations for IPI if they’re not financially suitable,” DeLeon Guerrero pointed out.

He said if IPI does not have the funds to pay the fees and finish the building, they have no right to have the casino license.

“We should revoke it and then we move on to the next licensee who has the potential and has the financial tools to carry this forward,” the chairman said.

Describing IPI as being “too deep in the hole,” DeLeon Guerrero said he believes in order for CCC to move forward legally, there has to be an official compliance from IPI with the CNMI Supreme Court order, and come up with timeframe to pay the fees.

“If they don’t comply with it, then that will be the next move to revoke. Or at least have an open hearing for revocation hearing, which they can come in and explain why they are not paying,” he said.

The chairman said because for the license fee, the Supreme Court had already ruled for CCC to come up with a reasonable time.

DeLeon Guerrero said reasonable time is not right now because IPI has to be given a timeframe.

He said, however, for the $14.5-million regulatory fee and the $5-million fine, there’s no timeline.

The chairman also disclosed that during his meeting early this month with Gov. Arnold I. Palacios, the governor stated that IPI’s license should be revoked or at the minimum take down 50% of what it owes and take the remaining 50% in six years.

“So this body has the authority to decide that. But I think those have to be considered too as an opinion, what is IPI capable to pay versus what is executive branch expects,” DeLeon Guerrero said.

Commissioner Martin T. Mendiola also shared his concern and perspective.

Mendiola said their main focus should be for the casino industry to take off again so that it benefits the CNMI as a whole.

He noted that millions of dollars circulated in the CNMI economy when IPI’s casino was still doing good.

Mendiola said CCC, the governor, IPI, and everybody else should work together to make the casino industry prosper again.

“Because we’re hurting right now in the economy very seriously. Everybody is hurting right now,” said the commissioner, adding that the best option is to form a cooperative and joint venture.

“So, I’m not suggesting that, it be 50%, or else forget it. Or we just [going to] pull the license from you. It shouldn’t be an extreme term like that. It should be, let’s put our heads together and our hearts together and let’s come up with the best possible option for everybody and let’s get this industry moving again,” Mendiola said.

He also noted that he has not seen IPI coming to the board meeting and offer something.

“We just sit here volunteering our time and efforts. And it doesn’t seem like we’re getting somewhere toward reviving this industry,” he said.

Commissioner Ramon M. Dela Cruz said maybe they should sit down and start looking at some kind of a global settlement, to give IPI enough breathing room to come back.

Dela Cruz said if they move right now and just take away IPI’s license, it is going to be more difficult to collect the fees from them.

He said IPI should step up and offer some kind of at least a minimum guarantee payment to the CNMI government so they can get this thing moving forward.

“I see that’s the only solution. Otherwise, if we’re [going to] kill the tree that doesn’t want to bear fruit because you don’t want to put water and you don’t want to put fertilizer, and for sure that tree is going to die,” Dela Cruz said.