The Commonwealth Development Authority aims to suspend the tax relief currently afforded to Lao Lao Bay Golf & Resort, apparently out of the resort’s failure to meet annual public benefit contributions in the last four or five years.
The CDA board of directors adopted a resolution essentially recommending to Gov. Eloy Inos the suspension of the resort’s qualifying certificate.
The resolution states that the resort “did not meet the minimum annual public benefit contributions requirement of $100,000 in 2010 and each year thereafter.”
On Sept. 26 2013, CDA issued a written notice of non-compliance to the company’ president, Sang Ho Boo, and gave them 15 days from receipt of notice to request for a haring before CDA.
But, according to the resolution, no hearing was requested.
The CDA board last December voted to recommend to the governor the suspension of the certificate and reduction of its benefit cap.
CDA recommends through the resolution two specific actions: the suspension of the resort company’s qualifying certificate, from it’s effective date in 2008 through December 2017 that would result in the company “not qualifying for any tax relief under the certificate during the suspension period.”
The resolution also noted that acting director of the Division of Revenue and Taxation Larissa Larson was notified of CDA’s decision to suspend the certificate.
Larson “did not object to the board’s recent action,” the resolution says.
The resort’s qualifying certificate stated that the resort would contribute in cash on an annual basis not less than $100,000. This would have to go to approved community-based public programs and activities.
The certificate also requires that 50 percent of these contributions be for public health programs and activities.
The certificate also stated that any contributions made to fulfill land lease requirements, or contributions that the resort receives education tax credits for, or contributions made to churches or church organizations would not count as part of these requirements.