The front desk of Rota Resort.
The CCTV cameras at the Rota Resort entrance have been vandalized.
Palm trees and other vegetation are seen on Rota Resort’s unattended golf course.
ROTA Resort LLC, which owns Rota Resort & Country Club, has appealed the Department of Public Land’s decision to terminate the company’s land lease contract for failure to pay a total of $639,897 in lease fees from July 2020 to February 2023.
Rota Resort legal counsel Collin Thompson appeared in a status and scheduling conference conducted by DPL Hearing Officer Ramon S. Dela Cruz at 2 p.m. Tuesday.
Assistant Attorney General Ali Nelson and Compliance Director Greg P. Deleon Guerrero appeared on behalf of DPL.
Both parties agreed to set an evidentiary hearing for July 27.
Thompson, on behalf of Rota Resort, proposed an informal exchange of information and discussion of settlement possibilities.
But Nelson said DPL is not interested in an informal exchange of information since the department had done it already. She said the facts about Rota Resort’s failing to pay its rent and its facility being abandoned were not disputed.
She said a stipulation of facts would be helpful, but Thompson proposed an evidentiary hearing instead.
Nelson agreed to skip the stipulation and proceed to an evidentiary hearing.
Toward the end of the meeting, they both agreed to hold an evidentiary hearing at 10 a.m. on July 27 at the DPL hearing office.
Last month, acting DPL Secretary Teresita A. Santos issued a termination notice to Rota Resort owner Hee Kyun Cho, demanding that he remit $639,897.37 in unpaid lease fees, with interest.
DPL said Rota Resort, which also operated an eight-hole golf course, is in violation of several provisions of the land lease contract.
These violations include failing to make timely quarterly payments; failing to build, construct and fully equip and furnish a minimum of 200 hotel rooms; and failing to maintain the buildings and surrounding premises in a neat, sanitary and attractive condition.
DPL said, based on records, Rota Resort owes the department $639,897.37 in lease and interest for a period of July 1, 2020 to February 28, 2023.
For its part, Rota Resort invoked a “force majeure” clause in the land lease contract due to the economic impact of the Covid-19 pandemic.
But DPL said such clause only applies to the commencement or completion of the original construction, repairs, or reconstruction; and only results in the period of delay to “be added to the period allowed herein for completion of such work” and does not excuse performance entirely.
In addition, DPL said the land lease contract requires Rota Resort to notify the department in writing 30 days after the occurrence of any such events.
Rota Resort did not notify DPL of its intent to seek relief until Rota Resort through its attorney sent DPL a letter arguing force majeure, the department said.
Some members of the community on Rota have expressed dismay on “how Rota Resort looks right now.”
One of them took photos of the abandoned hotel whose furniture, equipment and facilities are “in total disarray.” The golf course “has been reclaimed by nature, with trees growing on some of the greens and along fairways.”
The hotel premises have been vandalized and appeared to have been burglarized as well, said a resident who declined to be identified.
Paper and office items are scattered on the floor of the Rota Resort office.
Office cabinets in total disarray.
Some of Rota Resort’s golf clubs are scattered in its pro shop.
