‘Other businesses are struggling, at the brink of shutting down’
Even as Hyatt Regency Saipan is closing on June 30, 2024, other businesses are struggling and are at the brink of shutting down, according to House of Representatives minority leader Rep. Patrick H. San Nicolas (R-Tinian) on Friday.
San Nicolas said during the House’s special session that he is extremely concerned where the CNMI economy is heading.
“And we don’t know who else will be closing shop sooner than later. This is alarming,” the minority floor leader said.
San Nicolas underscored the need to support and protect existing hotels, restaurants, and other businesses, or otherwise, they will close shop too.
He urged his colleagues to pass and approve “as is” E-Land/Micronesia Resort Inc.’s (MRI) proposal for a new land lease to continue operating the Coral Ocean Resort.
E-Land Group owns the majority share of Suwaso Corp., which owns Coral Ocean Resort.
San Nicolas further urged the Senate to support and trust what the Department of Public Lands, Office of Attorney General, and MRI all have negotiated and approved.
“Let’s not continue the delay,” he said.
DPL submitted to the Legislature a proposed 40-year new land lease to Suwaso Corp. to continue operating the Coral Ocean Resort, with an investment about $30 million.
The proposed new land lease is currently being reviewed by the Senate Committee on Resources, Economic Development, Programs & Gaming Committee. The House’s Committee on Natural Resources is also handling the matter.
Under the DPL proposal, which needs the Legislature’s approval, Suwaso is allowed to continue its operation of Coral Ocean Resort in As Gonno for another 40 years, with an investment of over $30 million. Suwaso will be granted an additional 15-year lease extension if the initial lease is granted by DPL and is approved by the Legislature.
Suwaso’s 15-year extension from the original land lease granted in 1986 will expire in 2026.
San Nicolas thanked MRI for its continued support and commitment to invest in the CNMI’s ailing economy, and for providing jobs to over 450 employees.
“We have to support MRI because if we don’t and it closes all its three hotels, it would be a huge blow not only to our economy but for the 450 plus employees and their families,” he said.
E-Land Group/MRI currently owns Coral Ocean Resort, Kensington Hotel, and Pacific Islands Club Saipan.
Patrick H. San Nicolas
