‘Extend our 15-year land lease’

Suwaso Corp.’s new owners personally asked lawmakers yesterday to approve their proposed 15-year land lease extension for the Coral Ocean Point hotel, which will undergo a phased-in $22 million renovation and pay off the previous owners’ over $1.57 million debt to CNMI public and private entities, drawing support from members of the House, Senate, and the public.

A new consortium of investment partners acquired Suwaso Corp. on July 11 from the previous owners composed of Hyakumata Co. Ltd. in Japan and other minority shareholders.

Prior to the full acquisition, the new owners also wiped out the previous owners’ debt related to a $23 million Japan corporate debt settlement.

They also plan to pay off the previous owners’ debts with different CNMI government and private sector agencies totaling more than $1.57 million, using $7 million in immediate infusion from the financier. These debts include $919,728 in tax payment arrears with the CNMI Division of Revenue and Taxation.

Suwaso Corp.’s new owners are led by Japan-based investor Yusuke Fumoto. CNMI attorney Vincent Torres holds a minority share.

China-based investor Jia Tie Liang is the major financier of all infrastructure upgrades and improvements to Coral Ocean Point.

Jia, who has been to the CNMI several times, is the president and chief executive officer of Sheng Jia Heng Xin Investment Co., which is engaged in jade mining operations, real estate, retail, and movie productions. He also plans to revitalize Tinian and Rota during visits to the CNMI early this year.

Two of the three new owners—Fumoto and Torres—appeared before the lawmakers two days before a scheduled joint session of the Legislature to consider the proposed 15-year lease extension.

“We promise to be better than the previous owners,” said Suwaso Corp. board secretary Philip Mendiola-Long, who was one of those who made a presentation about the new owners and their plans in front of lawmakers and other members of the public yesterday afternoon on Capital Hill.

Gov. Benigno R. Fitial asked members of the House leadership on Tuesday to hold off action on the proposed land lease until he meets with the new owners. Mendiola-Long and Torres separately said they would like to meet with the governor as soon as possible.

House Speaker Eli Cabrera (R-Saipan), in an interview after the presentation, said he’s glad he invited the new owners of Suwaso Corp. to meet with the lawmakers “to get to know them more.”

Cabrera said all his questions about Suwaso Corp., its previous and new owners, and plans were answered during the presentation. He said he supports Suwaso Corp.’s proposed land lease extension.

But Cabrera said he will be asking other members of the House leadership about their thoughts on Suwaso Corp.’s proposal, and decide today whether to push through with the joint session on Friday.

Senate President Paul Manglona (Ind-Rota), who was also at the Suwaso Corp. presentation with most senators, said he supports the lease extension.

Rep. Ray Yumul (R-Saipan) and Senate floor leader Pete Reyes (R-Saipan) separately announced they will vote “yes” on the lease extension proposal on Friday.

Saipan Municipal Council chair Ramon B. Camacho, who was also in the House chamber yesterday, said he supports the extension but wants the new owners to ensure that they maintain the public beaches near Coral Ocean Point, and to hire Northern Marianas-descent employees.

Tinian Mayor Ramon M. Dela Cruz, in a separate letter to Public Lands Secretary Oscar Babauta yesterday, also expressed support to Suwaso Corp.’s lease extension.

“In addition to improving the Coral Ocean Point property, Mr. Jia’s investment will also include opening a new Beijing route partnering Coral Ocean Point with the Tinian Dynasty Hotel and Casino to bring more tourists to Saipan and Tinian,” Dela Cruz said.

Part of Suwaso Corp.’s revitalization plan is to build 200 new guest rooms with an estimated budget of $7.6 million. This will include additional standalone bungalows and the renovation of exiting bungalows to increase room capacity. It also includes a new water park, purchase of solar-charged golf carts, and improvement of the golf course.

The owners said the plan includes hiring of 60 additional employees, bringing the number of full-time employees to 118.