Palacios: DPL needs to push hard for new hotel leases
Gov. Arnold I. Palacios says he is pushing the Department of Public Lands to pursue new leases for iconic hotel properties that are set to expire soon.
Recently, the House of Representatives and Senate held its first joint session 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.
In a statement from Palacios, he said while this is good news, he continues to push DPL to pursue more leases as other iconic hotel properties will soon exhaust their leases.
“I believe PIC (Pacific Islands Club Saipan) and Kanoa (Resort) are all up for lease renewals, so DPL needs to push hard. Obviously, the Mariana Resort property has been idle for quite a while, so they need to address that issue. I’m pushing them on a weekly basis,” he said.
Last week, 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 includes a minor amendment in the benefit of $5,000 that Suwaso will pay annually to a scholarship program specifically for NMDs.
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.
Gov. Arnold I. Palacios
