Escrow deal may be amended to move the Aug. 1 deadline
Rather than rush into a casino development agreement with contentious issues still involved, parties may amend an escrow deal for a $30 million deposit so that the Aug. 1 deadline for the release of the funds to the original owners could be extended. Best Sunshine International Ltd. chief operating officer Terence Tay said yesterday this is an option.
“Changing that escrow agreement depends on the outcome of [Thursday’s or Friday’s] meeting. There’s distinct possibility,” Tay told Saipan Tribune. “I don’t think we need to rush that.”
Once signed, the minimum $2 billion exclusive casino agreement will be the biggest development deal in the CNMI in decades. It also has far-reaching impact on the island’s way of life, so parties are trying to ensure they look into every provision of the deal.
Under the existing escrow agreement, Bank of Guam would release the $30 million deposit to the original owners of the funds rather than to the government if an exclusive casino license is not granted by Aug. 1, Lottery Commission chair Sixto Igisomar said.
With that deadline drawing near, the Lottery Commission and Best Sunshine are still not on the same page on the locations of the hotels and casinos, among other things.
“From the beginning, we knew land is going to be an issue,” Tay said.
He said Best Sunshine is looking at multiple locations for the integrated resort project. With the limited availability of beachfront property on Saipan, it is a challenge to build at least 2,000 hotel rooms in just a single location.
Because the casino development agreement is still under negotiations, parties cannot discuss in details the remaining issues.
It was learned, however, that Best Sunshine is looking at building an integrated resort in the northern and southern part of Saipan, as well as in Garapan, mainly because of limited properties available.
Another issue is whether Best Sunshine would be allowed to have casinos in all of the hotel rooms it will build or develop on Saipan.
Tay added that Best Sunshine will be investing more than the $2 billion minimum required by law.
Igisomar conceded there are still issues that need to be ironed out but he is hopeful that an agreement will be reached soon.
Once a casino development agreement is signed, the $30 million held in escrow will be released to the CNMI government, for the payment of retirees’ deferred 25 percent pension and interest on former defined benefit members’ withdrawn contributions.
In May, Best Sunshine presented to the Lottery Commission its four-phased integrated resort plan, the first phase of which includes a 401-room hotel and casino by 2017-2018. The grand opening is set for 2020, with total rooms of at least 2,000 as required by law.
The Inos administration is also asking the public’s patience as negotiations between the Lottery Commission and Best Sunshine continue.
Press secretary Angel Demapan said the administration can only say that once a license has been issued and the funds are released, they intend to work swiftly to give retirees and DB plan members the money they deserve.
Still, there is still no telling whether it would be the Department of Finance or retirement settlement fund trustee Civille & Tang that would process the payments to retirees and DB plan members.
I can see an interesting thing arising out of this Casino “deal” Since according to “Sunshine” there is not enough open area to build a 2k room complex, they will build on many different sites, as they originally stated in there publish plans at the time of their app.
NOW they want to include Casino’s at each different hotel. This is taking on more interesting routes.
Novel idea. (Not) Wonder why Six didn’t think of it sooner? Maybe it was the reporter’s spin, but it sure seemed like he was saying he may have to give away the store to keep from losing the escrow…
“From the beginning, we knew land is going to be an issue,” Tay said.
Hmmm. So, they knew there was a problem with land, but they went ahead and put in their application.
“Another issue is whether Best Sunshine would be allowed to have casinos in all of the hotel rooms it will build or develop on Saipan”.
I certainly hope they are not allowed to build casinos IN ALL of the HOTEL ROOMS they build….LMBO! How would they build such a thiang? Line all the bunk beds against the walls of each floor and have players take turns on them for a fee like the parking stalls along the streets? If they built 40 floors of casino/hotel rooms then I guess that may fit quite a hefty number of people 24 hours a day and there will be no need to have a reservation office…beds are open…LMBO!