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Hearing set for World Resort’s QC request
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Posted on Sep 04 2005
The Commonwealth Development Authority has set a public hearing for World Resort Saipan’s qualifying certificate application.
CDA is soliciting oral or written comments on the hotel’s request for tax relief under the Investment Incentive Act of 2000. Statements will be received during a public hearing at the Gov. Pedro P. Tenorio Multi-Purpose Center in Susupe at 10am Thursday, Sept. 8, 2005.
World Corporation, which operates World Resort, is planning on investing $25.5 million on the renovation and expansion of its resort hotel.
As an incentive for this investment, World Resort is asking the government for 100-percent business gross revenue tax abatement, 100-percent corporate income tax rebate, and 100-percent tax abatement for hotel occupancy that exceeds 2004 level.
The hotel wants to receive the tax relief over a period of 25 years.
This is World Resort’s second application for a qualifying certificate.
Gov. Juan N. Babauta approved the hotel’s original application on Aug. 31, 2004, granting World Resort total tax rebates of $4 million over a 10-year period. This was based on the hotel’s February 2004 expansion plan, which had an estimated cost of $14 million.
However, the hotel subsequently decided to make additional investment and expressed its intent to CDA to amend its qualifying certificate.
Since no law allows CDA to amend an already issued QC, World Resort has opted to cancel the original and redo the entire application process, even though it could take at least four months to process.
World Resort explained that maintaining a consolidated qualifying certificate would be more convenient than having to comply with the requirements of two separate QCs.
The hotel proposes to invest approximately $25.5 million to renovate and expand its resort hotel located in Susupe. The project includes the construction of a water park, additional rooms, a 25-meter national standard race pool, a day care center for children, an outdoor stage, and other facilities. (Agnes E. Donato)
