By Gemma Q. Casas
Variety News Staff

THE House of Representatives and the Senate are scheduled to hold a joint session this morning to decide on Marianas Resort Development Co. Inc.’s application to lease, on a long-term basis, over a million square meters of public land on Tinian for its proposed resort and casino project.
Rep. Edwin Aldan, Covenant-Tinian and chairman of the House Committee on Natural Resources, said the joint committee report they have prepared recommends the approval of a 25-year lease to MRDC for its proposed Matua Bay Resort & Casino project in Tinian subject to a further extension of up to 15 years.
The House and Senate Committees on Natural Resources are also recommending a 50 percent deferment on MRDC’s annual lease payment for five years to the Department of Public Lands in consideration of the construction period.
Aldan said the government is not getting the best deal for its public land but the committee has taken into consideration the fact that there are no new investors coming in to Tinian at this time.
“Not really,” he said when asked if he thinks the lease terms were the best for the government. “But we don’t see any other investors coming in.”
He added that a discounted lease payment during the first few years of an investors’ operation in the CNMI is a standard practice which takes into consideration the lack of income during the construction phase.
MRDC is a conglomerate of Asian investors, mostly from Japan.
According to Aldan’s chief of staff James Mendiola, MRDC will build the project in four phases.
Mendiola said the pre-construction phase would cost MRDC at least $4 million. The second phase would be the construction of an 18-hole golf course costing $11 million.
He said the 300-room hotel is estimated to cost $42 million while an additional $18 million would be infused by the project’s proponents for operations for a total of $75 million.
“That’s according to their business plan but the design might change,” said Mendiola.
MRDC said it will prioritize hiring local people when the project is completed.
“We need to have some employment on Tinian. This project is not going to benefit only Tinian but the whole CNMI too,” said Aldan.
In April 2006, the government signed a memorandum of understanding with MRDC which afirmed the commitment between the two parties to proceed with the project.
The MOU indemnifies MRDC from potential lawsuits should it decide not to go ahead with the project.
Tinian Dynasty Hotel & Casino started the casino industry on Tinian nine years ago but it has yet to recoup its multi-million-dollar investment as the Northern Marianas continues to reel from its sluggish tourism-based economy.
Among the three inhabited islands of the Northern Marianas, only Tinian legally allows the operation of casinos.
But the law limits the opportunity to only five investors — MRDC and Tinian Dynasty are among them.
Investors are required to pay $175,000 to operate a casino on Tinian — $150,000 covers the investigation fee and $25,000 the application fee.