Laolao Golf, Grand Hotel purchase deals get final OK

The Marianas Public Lands Authority granted yesterday its complete approval of the sale of Saipan Laulau Development Inc. and Saipan Grand Hotel to their respective buyers.

The MPLA board of directors made the unanimous vote to endorse both transactions during a meeting on Tinian, which was attended by all the board members except MPLA vice chair Manny Villagomez.

According to MPLA chair Ana Demapan-Castro, the board gave its approval upon the recommendation of the agency’s management, which found the buyers financially capable to take over the two companies’ lease agreements with Public Lands.

She said the lease transfers have also been determined compliant with the master lease agreements originally signed with MPLA.

The transfer of Saipan Laulau’s lease to the United Micronesian Development Association, as well as that of Saipan Grand Hotel to Asia Pacific Hotels Inc., received the MPLA board’s conditional approval on Jan. 5, 2005.

As part of the approval given to UMDA, the MPLA board directed management to conduct a review to ensure compliance with the master lease and the corresponding amendments, and a background check on UMDA.

The board also required that UMDA assume Saipan Laulau’s lease-related obligations and liabilities within 90 days from Jan. 5.

Saipan Laulau operates the Laolao Bay Golf Resort in Kagman.

Meanwhile, MPLA attached several conditions to its approval of Asia Pacific Hotels’ takeover of Saipan Grand Hotel.

On top of the list of conditions was that Micro Pacific Development Inc., the former owner, must settle its $343,440 outstanding account with MPLA. The company did so immediately after receiving the conditional approval on Jan. 5.

The MPLA board also instructed management to ensure the parties’ compliance with the master lease and corresponding amendments; conduct a background of Asia Pacific Hotel and its principals, as well as its licenses to conduct business in the CNMI; and for the comptroller to ascertain financial issues relating to the purchase.

An affiliate of Tan Holdings Corporation, Asia Pacific Hotels Inc. also owns and operates Dai-Ichi Hotel Saipan Beach, Guam Dai-Ichi Hotel, and Century Hotel on Saipan.

Saipan Grand Hotel has 224 rooms and is located in Susupe. The hotel’s facilities include two swimming pools, several restaurants, a dance club, a wedding chapel, tennis courts, a ballroom, and several meeting rooms.