THE Department of Public Lands and Saipan Portopia Hotel Corp., which owns Hyatt Regency Saipan, will sign a new land lease contract at 10 a.m. today, Oct. 8, 2021.
The signing ceremony will be held at the hotel’s Miyako Restaurant.
In May, DPL granted Hyatt a new 40-year lease agreement for 4,432 hectares of public land in Garapan. It does not require legislative approval. Hyatt’s current lease ends in December 2021.
The proposed annual rental schedule is as follows:
Guaranteed Annual Minimum
0.5% of Fair Market Value
Percent of Gross Receipts
1% of Business Gross Receipt
Hyatt was also required to comply with the following:
• Payment of $271,467.50, due upon signing of the agreement, for the annual base rent based on 0.5% of the appraised market value for the first five-year period.
• Payment of $250,000 for security deposit due upon execution of lease agreement. The deposit shall be maintained for the duration of the lease term. Funds remaining on account with DPL after the completion of the proposed development in excess of $250,000 shall be released to the lessee upon completion of the project development.
• Payment of construction bond of $500,000 for additional security deposit for construction/renovation costs. This fee, representing 5% of the total cost of the proposed project to which the lease pertains, will be held by DPL to secure construction start-up, and remediation costs. This amount can be drawn down to use during construction.
