The 435 written testimonies submitted to the Commonwealth Ports Authority during Thursday night\u2019s public hearing were all in favor of a successor master agreement between DFS and the airport, according to Barrie C. Toves, CPA\u2019s ad-hoc committee chairman.<\/p>\n
The ad-hoc committee will soon convene to review the testimonies, he said.<\/p>\n
From there they will debate whether they will recommend that CPA should enter talks with DFS on a new master concession agreement for all Commonwealth ports of entry, Toves said.<\/p>\n
The committee is looking to have a decision by the first week of November, he said.<\/p>\n
Earlier, consultants Ricondo & Associates presented CPA with three options: a successor master agreement, a duty-free retail concession agreement, or a duty-free retail concession agreement-prepaid.<\/p>\n
Toves said the committee has a \u201cbit of an issue\u201d in regards to Public Law 4-60 that sets up the parameters for these options, particularly on the law\u2019s definition of a master concession.<\/p>\n
\u201cThe current [MCA] is not part of the alternative in terms of the statute, the way it was written. A master concession as defined by the statute is that the concessionaire will have to operate duty-free shops in all ports of entry. That means all six ports of entry [in the CNMI],\u201d he said.<\/p>\n
How the board came up with the \u201cwatered down\u201d master concession agreement is something that the committee is now reviewing, he said.<\/p>\n
\u201cThe way I\u2019m reading [the MCA], it is in violation of the statute,\u201d he said, but added that the committee is looking into the legal opinion that allowed this at that time.<\/p>\n
According to Ricondo, the current MCA is no longer exclusive to each and every port, as it no longer applies to Rota and Tinian. Ricondo called a concession program at these locations \u201cimpractical.\u201d<\/p>\n
They based this on historical passenger numbers and the zero direct flights to international destinations from these airports.<\/p>\n
However, they said the economy and infrastructure of Tinian and Rota airports may improve in the future.<\/p>\n
On seaports, Ricondo also pointed to low passenger numbers as one reason a concessionaire would unlikely view programs there as profitable.<\/p>\n
\u201cIt is very likely that these stores would lose money,\u201d the report stated.
\nToves, who is from Rota, echoed Ricondo\u2019s recommendations.<\/p>\n
\u201cThe number of flights does not warrant for a shop the size of duty-free or something to that effect. It\u2019s going to be a losing proposition for any concessionaire to open shop,\u201d he said.<\/p>\n
Also, there are no facilities at the seaport on Rota or on Tinian to satisfy the requirements of the statute, according to Toves.<\/p>\n
He described public comments as a \u201cmajor factor\u201d for him as a member of the board moving forward.<\/p>\n
CPA confirmed with port managers on Rota and Tinian that no comments on the matter have been submitted from these islands.<\/p>\n
Nevertheless, there is another \u201cangle\u201d that can be taken in satisfying the statute, Toves said.<\/p>\n
\u201cThe majority of the population is here on Saipan so that gives way for the board to be a little more considerate that it does benefit the Commonwealth as a whole because the majority is here,\u201d he said.<\/p>\n
Toves could not confirm if CPA has received testimony from a firm outside the CNMI expressing interest as a potential bidder.<\/p>\n
Last Thursday\u2019s public hearing was packed, with many of the over 200 participants left standing to crowd the corners, back, and entrance of the room.<\/p>\n
No one at the hearing spoke against DFS continuing its MCA with CPA.<\/p>\n
Rather, comments from private citizens, leaders in government and the business community, spoke in glowing terms of the vital role DFS has played in the island\u2019s economy and community.<\/p>\n","protected":false},"excerpt":{"rendered":"
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