\n\t\t\t\tThe Innovation Group of Companies president Michael Soll, right, presents the results of their evaluation of the two applicants’ Saipan casino resort development proposal, while Joel Rittvo, director of architecture design, left, looks on yesterday. (Haidee V. Eugenio) \n\t\t\t\t<\/figcaption><\/figure>\n\t\t<\/div>\n\nBest Sunshine scored 67.5, while Marianas Stars got a rating of 51.0 on a scale of 1 to 100 with 100 as the highest. That\u2019s a 16.5-point difference.<\/p>\n
This is based on the Innovation Group\u2019s evaluation of the applicants\u2019 Saipan casino resort development plan.<\/p>\n
\u201cWhile Best Sunshine\u2019s score of 67.5 out of 100 points reflects an acceptable threshold on which to base negotiations, the successful negotiation of a strong development agreement should effectively increase the score to above at least 85 points on a parallel basis,\u201d The Innovation Group president Michael Soll said.<\/p>\n
Soll presented the findings to the public during a Lottery Commission meeting yesterday afternoon at the Pedro P. Tenorio Multi-Purpose Center in Susupe. <\/p>\n
He was accompanied by Joel Rittvo, director of architecture design at the Innovation Group, an international provider of consulting and management services for the gaming, hospitality, leisure, and entertainment industries.<\/p>\n
B2G Global Strategies found \u201csignificant adverse finding\u201d regarding the failure of Marianas Stars\u2019 parent company, Mega Stars Overseas, to comply with regulatory requirements and failure to sufficiently cooperate with a regulatory agency, the Tinian Casino Gaming Control Commission. <\/p>\n
B2G Global Strategies, through project manager for the CNMI Steve Gomez, said the significant adverse finding relates to involvement in the operations at Tinian Dynasty without proper licensing and problematic compliance with the TCGCC. <\/p>\n
Mega Stars has bought Tinian Dynasty Hotel & Casino.<\/p>\n
In his presentation, Gomez said B2G concluded that Best Sunshine would be \u201csuitable\u201d to be issued a license.<\/p>\n
Gomez was accompanied at the presentation by B2G\u2019s Lisa Garcia. <\/p>\n
B2G, an international consulting and investigations firm specializing in security consulting, due diligence investigations, and strategic solutions for the business sector and government entities, looked into four areas in evaluating Best Sunshine and Marianas Stars\u2019 background: gaming experience and regulatory compliance, organizational structure, source of financing, and personnel background checks.<\/p>\n
Sixto Igisomar, chairman of the four-member Lottery Commission, said yesterday that no decision was made during the commission\u2019s executive session following the consultants\u2019 presentation.<\/p>\n
He said the commission meets again at 2pm today at the multi-purpose center to discuss the consultants\u2019 recommendations.<\/p>\n
\u201cWe will make a decision [Tuesday]. What that decision is, we would not know until [Tuesday],\u201d added Igisomar, who is also the Department of Commerce secretary.<\/p>\n
The three other commissioners present yesterday were Finance Secretary Larrisa Larson, Deputy Attorney General Gil Birnbrich, and Department of Public Safety Commissioner James Deleon Guerrero.<\/p>\n
Best Sunshine<\/strong><\/p>\nTerence Tay, Best Sunshine\u2019s chief operating officer, said the evaluation results were a \u201cpretty good health check\u201d on what Best Sunshine is doing right and the issues it has to take note of.<\/p>\n
\u201cWe\u2019re quite happy to hear the presentation by the consultants because at least we know what we have to do to improve, what are the things that we are doing right,\u201d he said shortly after the consultants\u2019 presentation.<\/p>\n
As to B2G\u2019s findings that Best Sunshine may attract negative attention because of First Natural Food\u2019s close ties to junket operator Hang Seng, Tay said, \u201cJunket operations sometimes bring about negative press reports but not all junkets are involved in shady businesses.\u201d<\/p>\n
\u201cThere are very well-run junket operators and I believe Hang Seng is one of them. There are junket operators even in Singapore, and these are very closely regulated by authorities,\u201d he said.<\/p>\n
Tay said some junket operators are known as independent agents, while some are known as international marketing agents \u201cbut basically they by and large contribute to the business of casino.\u201d<\/p>\n
B2G\u2019s evaluation of Best Sunshine\u2019s organizational structure indicates \u201cno adverse finding.\u201d<\/p>\n
When asked whether Best Sunshine is confident it would be granted the exclusive Saipan casino license, Tay said it would be up to the Lottery Commission but he said Best Sunshine is \u201cheartened\u201d by what they heard yesterday from the consultants.<\/p>\n
Tay also reiterated that Best Sunshine has been checking out properties on Saipan, but was not saying which ones are on the top of their list. When asked whether a public land in Marpi and the current site of the Hopwood Junior High School are among them, Tay said they have looked at those as well.<\/p>\n
The Innovation Group said their recommendation implies that Best Sunshine and its casino resort proposal are commercially acceptable as a basis for entering negotiations for a \u201cdevelopment agreement,\u201d and between the two proposals submitted, Best Sunshine\u2019s has the highest potential for maximizing benefits to the CNMI based on the weighing criteria that the Lottery Commission has set.<\/p>\n
Marianas Stars<\/strong><\/p>\nMarianas Stars representatives and consultants were also at the Lottery Commission meeting and presentation, just like representatives from Best Sunshine.<\/p>\n
In a statement hours after the meeting, Marianas Stars said it \u201crespects and appreciates the findings from consultants The Innovation Group and B2G Global Strategies.\u201d<\/p>\n
However, with respect to B2G\u2019sconclusions regarding parent company Mega Stars\u2019 gaming operations on Tinian, \u201cMega Stars wants to clarify that it has in fact been cooperating with the Tinian Casino Gaming Control Commission as it regards TCGCC Resolution No. 14-01 dated May 23rd, 2014.\u201d<\/p>\n
\u201cWhile there had been some areas of confusion between Mega Stars and the TCGCC that led to said resolution, these matters have since been addressed in a series of exchanges between the two parties. Mega Stars has attempted at every step along the way to explain our positions clearly to the TCGCC, to seek its input, ideas, and to work cooperatively with it to resolve any issues that arise. We remain committed to Tinian, and we hope that our investment there remains economically viable for us,\u201d it added.<\/p>\n
Public<\/strong><\/p>\nAt the start of the meeting and before the presentation of reports, two individuals got up for the public comment period. Businessman Juan Demapan said he wanted to comment but he didn\u2019t know about the consultants\u2019 report, while Gary Dubrall sought clarification as to when a decision will be made.<\/p>\n
Dubrall later said the presentation and commission meeting were \u201ca continuation of the farce\u201d on the whole casino matter.<\/p>\n
He believes it\u2019s a \u201cforegone conclusion\u201d to pick Best Sunshine, accusing the governor and some lawmakers of promising Best Sunshine an exclusive license when they were invited to Macau.<\/p>\n
Paul Zak, a businessman, said he was at the presentation to see whether there\u2019s any business opportunity to be had, now that a casino license award is imminent.<\/p>\n
\u201cAny time a company wants to spend money here, we should look for a business opportunity,\u201d he said. Zak is a shareholder of local airline Arctic Circle Air.<\/p>\n
Clyde Norita, a retiree, said he was at the presentation as a \u201cconcerned citizen,\u201d along with former lieutenant governor Diego Benavente and Commonwealth Ports Authority board chair Joe Lifoifoi.<\/p>\n
Norita was one of three individuals who rallied retirees to Capital Hill last week to put pressure on the House and Senate to pass a bill that would fix the ambiguities in the Saipan casino law and fully empower the Lottery Commission to award a license. Gov. Eloy S. Inos signed the bill into law on Friday, also in the presence of retirees and former defined benefit plan members.<\/p>\n
A grant of an exclusive license would trigger the release of a $30 million bank deposit that would be used to pay retirees\u2019 deferred 25-percent pension since last year, as well as the accrued interest on withdrawn DB plan contributions.<\/p>\n
Authorizing casino operation on Saipan remains one of the most divisive issues in the CNMI. <\/p>\n","protected":false},"excerpt":{"rendered":"
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