The Commonwealth Development Authority board of directors approved yesterday the qualifying certificate application of Ocean Vista Resort, with a requirement that it doles out $150,000 in public contributions every year, among others.<\/p>\n
The board emerged from an executive session of nearly five hours to begin the vote on the certificate. A similar vote two weeks ago failed to approve or reject the application.<\/p>\n
Ocean Vista Resort proposes to build a reported $46-million, 144-room hotel on Capital Hill.<\/p>\n
Yesterday, the board voted unanimously on the resort\u2019s application with specific requirements.<\/p>\n
One requirement, as described by board member Tom Glenn Quitugua, would be a \u201ccultural historical preservation aspect\u201d to be included in their project.<\/p>\n
A second stipulation would be an annual $150,00 public contribution to be directed to CDA for the agency\u2019s sole intent to provide more services to the Commonwealth, he said.<\/p>\n
A third stipulation, as recommended by CDA, would be 50 percent abatement of the business gross revenue tax and bar tax, he said.<\/p>\n
In addition to this, a benefit cap not to exceed $3.4 million or 10 years regardless of the year of bid, said Quitugua. \u201cOnce that amount is met then the cap will prevail,\u201d he said.<\/p>\n
The board later voted to memorialize their vote approving the qualifying certificate. This \u201cCDA Board Resolution 2015-002\u201d was voted unanimously. A copy was not made available yesterday.<\/p>\n
In an interview after the meeting, CDA board chair Diego Songao said there were \u201cno changes\u201d to the application since they last voted. He clarified that the board was pressured to make a decision because of the expiring term of member Quitugua.<\/p>\n
The CDA board was required to act on the application by a deadline of May 2. If there were no action by the board on the package, it would have gone automatically to Gov. Eloy S. Inos for his discretion.<\/p>\n
\u201cI felt the board was not given enough time so I resurrected the issue so the board can have enough time to deliberate the issue of the application,\u201d Songao said.<\/p>\n
Luckily, he said, Quitugua was reappointed to his spot on the board. The board can have a quorum for 90 days pending his confirmation hearing.<\/p>\n
The approval of Ocean Vista Resort\u2019s QC comes amid recent interest by the Inos administration to review the efficacy of the program in stimulating economic activity in the CNMI.<\/p>\n
The Investment Incentive Act of 2000, as amended, authorizes the granting of rebates and\/or abatements of up to 100 percent for a period of up to 25 years to qualified investors.<\/p>\n
One such investor, Lao Lao Bay Golf & Resort, has deployed $42 million in the CNMI per their QC. The CDA board approved a planned suspension of the resort\u2019s certificate nearly two weeks ago after it failed to meet the their minimum annual public benefit contributions requirement of $100,000 for the last five years, among others.<\/p>\n","protected":false},"excerpt":{"rendered":"
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