Public backs extension but…

Members of the community showed up to support the request of Imperial Pacific International (CNMI) LLC for more time to finish its multimillion-dollar casino-hotel, but many pushed for conditions that have to be put in place to benefit both the investor and the community.

Close to 20 spoke up when CNMI Lottery Commission chair Mark Rabauliman opened the floor to public comments, with many citizens and other officials expressing concerns and sharing their thoughts in yesterday’s meeting at a packed conference room of the Office of the Governor on Capital Hill.

Rabauliman, who is also the Department of Commerce secretary, said he was pleased by the interest the community showed at the meeting.

“Throughout the morning session, we heard a lot of public comments. Those [concerns] are some things that we’re going to take into consideration,” he said. “There was support for an extension but a lot of it revolved around conditions. Some were suggesting extreme conditions and some were talking about extending but with conditions that…would work both for the CNMI and IPI.”

He said that the analogy Rep. Joseph Leepan T. Guerrero (R-Saipan) expressed at the meeting best sums up the sentiments of the people who spoke up.

“I really liked the analogy that [Leepan Guerrero], who spoke in the vernacular, said regarding the chicken. Rather than trying to kill it, because you won’t be able to eat it, put some conditions to allow it to [lay] more eggs,” said Rabauliman.

He added that the same thing should be done with IPI—assist them so they could complete the project but make sure the CNMI won’t be at any disadvantage.

Rabauliman said that Lottery Commission members took notes of all the comments and would discuss these matters, along with the recommendations presented by the Development Planning Advisory Committee.

“A lot of those things were put in our notes and that will be some of the things that we’re going to discuss, along with the DPAC’s recommendations,” said Rabauliman, who is joined by Finance Secretary Larrisa Larson and Public Safety Commissioner Robert Guerrero on the Lottery Commission.

Rabauliman thanked those who shared their concerns during the public comments, “whether you’re in support of with or without conditions.” He assured that the commission would consider all comments.
 
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One of the critics of the casino project, Rep. Edwin K. Propst (Ind-Saipan), said it was déjà vu with IPI again requesting an extension, now a sixth time, to complete their mega structure in Garapan.

“It is kind of strange we had promises that the project would be done, in good faith we accepted it.But things happen and we know that. We understand that. We support the extension but with certain conditions. We support the extension but it needs to be at the best interest of our people.”

Some of the conditions that Propst suggested were a performance bond for the Garapan casino hotel and for IPI to submit a semi-annual construction progress report where fines would be imposed if the project does not meet mandated targets.

“Let us support the extension but with conditions that will benefit and protect our people, and our future generations to come. Our children are counting on us to do the right thing. I pray we do,” he said.

Former lawmaker Tina Sablan said that common sense conditions should be put in place before granting the extension request. “Such conditions would also be consistent with the recommendations of [DPAC], which in its Aug. 11, 2018 report to the governor called for the Commonwealth and IPI to negotiate terms that would lead to a higher probability of project success.”

Some of Sablan’s suggestions included having a U.S. Treasury-listed payment and performance bond, an independent monitoring program, stronger protection for U.S. workers, disclosure of IPI’s plans, more accountability for the community chest fund, disclosure of reports of IPI’s compliance with regulatory standards, and disclosure of all DPAC, IPI, and Commonwealth Casino Commission reports including the financial status and payment of tax obligations. See Page 11.

Sen. Sixto K. Igisomar (R-Saipan), who is the former chairman of the Retirement Fund, reminded everyone of the condition of his former agency and the entire CNMI before IPI invested millions of dollars in the Commonwealth.

“We all knew the kind of challenges we face in every new project. We knew all the experiences that we suffered. The availability of workers was already a problem. The Retirement Fund [back then] was underwater, way beyond it, the CNMI truly needed a quick solution.”

Bertita Camacho John, a retiree, said IPI has done a lot to the community through various projects like painting youth centers and cleaning schools. She added IPI’s investment also allowed retirees like her to receive their pension in full.

“Before, I was receiving only 75 percent of my pension. Now, it is now 100 percent because [IPI] contributed the 25 percent.  Our islands were in so much debt and struggling when the garment factory [industry] left.”

“There were austerity measures and government employees did not have salary increases. Now, that’s no more. Be mindful of that.”

Alex Sablan, chairman of the business group Northern Marianas Business Alliance Corp., said IPI has provided two-thirds of the CNMI’s budget and gave the Commonwealth treasury over $200 million since its inception.

He said there are conditions in the casino license agreement that needs to be implemented properly. “We’ve had conditions put on the CLA that existed. We need to see these conditions. Remedies put in place and continue to be dealt with.”

Former lieutenant governor Diego Benavente said the events in the past few months now has the Lottery Commission facing a tough decision. But protecting the CNMI economy should also be considered.

“My concern is with the other families of retirees and the entire CNMI. It will be an easy decision, if you think about the reason, and that is to protect the economy and industry that provides the government funds for public service—education, public safety, and others.”

“We’ve experienced a lot in the past. Look at the other industries that we had: garment and tourism. We struggled when the garment factories left and tourism dipped. Now we’re back up.”