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CDA says World Resort to get QC
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Posted on Sep 17 2005
Although details have yet to be discussed, Saipan World Resort Hotel is practically assured that it would get a qualifying certificate for its $25.5 million expansion program.
Commonwealth Development Authority board chair Tom Glenn Quitugua said in an interview Friday that the hotel will receive a new qualifying certificate. But details have yet to be discussed.
“Definitely they will receive a qualifying certificate but the terms and conditions, those details will come in the deliberations that are forthcoming,” said Quitugua.
He, likewise, said that the applicant is not sure what percentage of tax incentive it would get and for how many years it would be effective.
The CDA is setting a public hearing Monday for Saipan World Resort’s qualifying certificate application under the Investment Incentive Act of 2000.
World Corp., which operates World Resort, plans on investing $25.5 million to renovate and expand its resort hotel in Susupe. As such, it is asking the CNMI 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.
World Resort had actually been granted $4 million worth of tax incentives for 10 years under its 2004 application.
Gov. Juan N. Babauta approved the hotel’s original application on Aug. 31, 2004, which was based on the hotel’s February 2004 expansion plan, which had an estimated cost of $14 million.
The hotel reportedly decided to give up the existing QC and redo the entire application process in view of its additional investments this year. The new 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.
“They will receive as much as we can afford but bear in mind that we only make the recommendation. The governor has the final say so,” said Quitugua.
