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Two projects eyed for Outer Cove Marina
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Posted on Nov 22 2004
At least two development projects in Outer Cove Marina can be realized once the government takes over its operation from Marine Revitalization Corp.
Lt. Gov. Diego T. Benavente, in a recent letter to the Legislature, said that the National Park Service “is already negotiating to buy out its franchise agreement and develop the land portion of Outer Cove.”
At the same time, Benavente said that the U.S. Army Corps of Engineers has expressed willingness to construct a breakwater on the waters off the marina “but not until the Commonwealth regains control of the property.”
“It is therefore critical that the government acquire possession [of the property]. Without that, no further development of Outer Cove is possible,” he said.
Benavente is pushing for the Legislature’s approval of a $3-million settlement agreement between MRC, represented by businessman Anthony Pellegrino, and the CNMI government. The agreement calls for the initial payment of $800,000 to MRC and $2.2 million to be paid out over 20 years.
Benavente said the agreement’ approval must take place no later than Nov. 29, the resumption of the arbitration. He said that failure to accept the settlement would prompt MRC to reinstate its claim of over $5 million.
Based on the agreement, the $2.2 million can be paid through the operating revenues of Outer Cove Marina or through tax credit counted as a dollar-for-dollar against the tax obligations of specified Pellegrino companies.
The settlement approval would also allow the government immediate access to the facility.
The House leadership, however, expressed skepticism over the deal, noting that the Legislature has no business interfering in a contractual dispute.
House leadership spokesman Charles Reyes Jr. likened the issue to the credit relief bill, which the Executive Branch had vetoed over a perceived breach of the doctrine of separation of powers.
Benavente said that, if the Legislature fails to pass the bill, this will allow the government to suffer from huge financial liabilities. He believes the Legislature still has time to act on the settlement bill.
“I am clear in the letter. We’re trying to prevent a worst-case scenario,” he said.
