Attorney Vincent DLG Torres, one of the new owners of Suwaso Corp. which runs COP, told reporters that right now, they are not thinking of opening a casino.
Suwaso Corp.’s other new owners are Tinian’s Philip Mendiola-Long, the vice chairman, and Japanese businessman Yusuke Fumoto, the president and CEO.
Businessman Jia Tie Liang of China is their partner.
On Wednesday, their group discussed with lawmakers COP’s golf resort revitalization plan which includes the infusion of $22 million and the construction of new 200 hotel rooms, which is a casino license requirement under the Saipan casino bill.
But Torres, whose brother Sen. Ralph DLG. Torres, R-Saipan, opposes the measure, said they invested in COP to remodel its golf course.
“I have no intention or any plan to include casino. I was not even thinking about it. It’s not part of the plan,” the lawyer said.
The hotel, he added, can only accommodate up to 200 rooms.
Right now, COP has 93 existing rooms all of which are in dire need of renovation.
Mendiola-Long said their team will make COP one of the best golf resorts in the Pacific region. And because its owners are locals, the CNMI will be proud of the hotel, he added.
The new owners said of the $22 million in new investment, $7 million will pay for the obligations left behind by the previous owners. These include the $300,000 developers tax; $150,000 Department of Public Works review fee; $813,000 excise tax; $750,000 construction business gross revenue tax; $9,000 Commonwealth Ports Authority rental fee; $97,000 Department of Public Lands rent; and $919,728 in past due CNMI taxes.
The new Suwaso Corp., Mendiola-Long said, also paid the $23 million which the former owners owed a Japanese company.
The new owners asked the lawmakers to approve their application for a 15-year lease extension.
Its former owners made the same request but the government cited their failure to comply with the lease terms and conditions that included the payment of $4 million.
After “acquiring” Suwaso’s major shares on July 9 and its minor shares on July 19, Attorney Torres and his team obtained a new lease agreements with the government.
The group also cut a $15 million investment deal with Beijing-based Jin Heng Xin Company and up to $50 million investment contract with Japan-based Kyoritsu Property Management Company Limited.
Economic impact
Mendiola-Long said COP’s development will bring in additional flights from Nagoya, Beijing and Hong Kong.
He said they have signed a memorandum of understanding with the Tinian Dynasty Hotel and Casino to share Sichuan Airlines which has 245 air seats and Air China with 320 air seats.
He said both flights from Nagoya and Hong Kong will have 145 air seats.
COP, he added, will create 60 more jobs for locals and will allow for an $8.2 million “multiplier impact” per year on the CNMI economy.
Lawmakers expressed support for COP’s land lease extension.
Senate Floor Leader Pete P. Reyes, R-Saipan, said he was impressed by the presentation.
“Never before have I heard a commitment with passion to help locals,” he added.
The Senate and the House are holding a joint session today to decide on Suwaso’s land lease extension although Gov. Benigno R. Fitial has asked them to reschedule it.
Press Secretary Angel A. Demapan, in an interview, said there is due process for handling such applications with DPL.
DPL, he added, will have to call for a hearing to discuss application. DPL also has to review the original agreement.
“And that would be the grounds for determination whether the obligations have been fulfilled to some degree or whether the remaining unfulfilled obligation can be fulfilled moving forward. DPL would come out with the determination following that hearing,” he said.
Because that hearing has not taken place yet, due process has not been afforded to the corporation, he added.
That is the reason the governor asked the lawmakers to reschedule the joint session.
“Having the joint session without that hearing may also result in a violation. We want to make sure that due process is observed,” Demapan said.
