Sen. Dennis C. Mendiola speaks during a Senate session last month.
SENATOR Dennis C. Mendiola supports a 15-year extension of Coral Ocean Resort’s land lease agreement with the Department of Public Lands.
E-Land Group’s Micronesian Resort Inc., the parent company of Suwaso, which manages the hotel, is seeking a 15-year extension of its land lease contract that will expire on Aug. 10, 2026. However, the company’s president and chief executive officer, Brian Shin, earlier told the Legislature that they were struggling to comply with the 200-hotel room requirement under the current land lease agreement.
In his letter to the Senate Committee on Resources, Economic Development & Programs chair, Senate Floor Leader Corina Magofna, Mendiola said: “It is imperative that we act with compassion and pragmatism in considering Coral Ocean Resort’s lease extension.”
He noted that businesses in the CNMI “are facing unprecedented challenges, evidenced by the recent announcement of Hyatt Regency Saipan’s closure at the end of June due to a sharp decline in revenue.”
Mendiola said Coral Ocean Resort has faced “extraordinary obstacles” that delayed the construction of its additional hotel rooms. He said Super Typhoon Yutu and Covid-19 severely hindered the hotel’s ability to retrofit and relaunch its operations.
The senator said DPL should be allowed to enter into an agreement “that serves the best interests of our people.” He suggested including a provision in the agreement to allow for revisions based on future economic conditions to ensure flexibility and accountability.
Any further delay may lead to Suwaso’s withdrawal of its business here, which would impact the local economy even further, he said.
“We cannot afford to delay the lease agreement any longer based on previous commitments that were disrupted by events beyond anyone’s control. It is crucial that we provide Coral Ocean Resort with stability and support it needs to contribute to our economic revitalization,” Mendiola said.
“I respectfully ask each member of the committee to consider the broader impact of their decision and to support the lease extension for Coral Ocean Resort. Let us work together to restore economic stability and growth in the CNMI,” he added.
