IMPERIAL Pacific International said it is “waiting for funds” to pay the Department of Public Lands.
IPI said on Sunday that it “is planning on a response and will be making payments.”
“Since we have 30 days, we are waiting until the near end of the timeframe,” IPI said.
In her March 31, 2023, notice of violation, DPL Secretary Teresita Santos gave IPI 30 days to pay its $179,761.90 rent, to cover the period beginning May 1, 2023 to April 30, 2023.
She is also asking IPI (CNMI) LLC President Lingli Cai to pay DPL $250,000 “to replenish the required security deposit.”
This $250,000 security deposit was already paid by IPI for the first five-year rent but, according to then-DPL Secretary Sixto Igisomar, DPL applied the security deposit to the rent due for April 29, 2021 to April 28, 2022.
IPI’s rental rate for the first five years of the lease term is also $250,000.
However, the security deposit and accrued interest were insufficient to account for the full amount due.
Igisomar said payment of rent in the amount of $250,000 was due April 29, 2022, for the period beginning April 29, 2022 to April 28, 2023. IPI failed to pay this rent, Igisomar said.
In her notice of violation, Santos said DPL reviewed the appraisal report and concurred with the market value of the unimproved land in the amount of $4.14 million.
She said under the land lease agreement, IPI’s guaranteed annual minimum lease rental for the second five-year period beginning April 29, 2020 to April 28, 2025 at 5% of the $4.14 million appraised value is $207,000 annually.
Also, based on the lease rental schedule for the second five-year period, along with IPI’s $150,000 remittance on Nov. 16, 2022, DPL made adjustments to IPI’s account which showed a credit of $25,426. With the adjustment of credit, IPI’s amount due is $179,761.90.
Santos told Cai that IPI committed the following violations:
1) Failure to submit a copy of valid fire and damage insurance policy with extended coverage endorsements jointly in the names of the lessee and DPL, covering the full insurable value of all permanent improvements on the premises.
2) Failure to submit a copy of valid commercial general liability insurance policy for the premises and operation with DPL and the CNMI government named as co-insured with the required minimum coverage amounts.
3) Failure to submit a copy of all licenses, certificates, permits and other required authorizations from any other government authorities having jurisdiction over the operation of IPI under the lease, specifically including a certificate of occupancy, valid business license, and most recent filed annual corporation reports.
4) Failure to remit $250,000 to replenish the required security deposit.
The lone casino licensee, IPI shut down in March 2020 following the imposition of Covid-19 travel and other restrictions.
