A recipient of a QC is entitled to tax breaks.
According to CDA economic development analyst Carline B. Sablan, the inactive QC recipients are Spring Water Inc., the Hyatt Regency Saipan, the Rota Resort & Country Club, Dai-Ichi Hotel and World Resort Saipan.
Spring Water Inc. received its QC in Oct. 2002 for its $1.6 million investment on Rota that never materialized.
On Sept. 16, 2002, CDA recommended a QC for Saipan Portopia Hotel Corp., doing business as the Hyatt Regency Saipan.
“The company asked the governor at the time not to sign the QC as it did not agree to certain conditions required,” Sablan told Variety.
The Hyatt was supposed to invest $20.5 million for the expansion and renovation of its facilities.
SNM Corp., d.b.a. Rota Resort & Country Club, received its QC on March 17, 2003.
But the company surrendered its QC on Jan. 1, 2005 in the midst of a change in management.
“Months later, the company came back to CDA to try to reinstate its old QC. CDA was unable to meet such request,” Sablan said.
Rota Resort’s promised investment amounted to $93 million.
Tax breaks were granted to Asia Pacific Hotels Inc., d.b.a. Dai-Ichi Hotel Saipan Beach on March 18, 2004.
But the company, which has since sold the hotel to Tan Holdings, did not accept the requirements of the QC which indicated an investment proposal of $32.5 million.
World Resort Saipan received its QC on Aug. 31, 2004.
“It surrendered the QC in May 2005 and reapplied for another QC to include additional investments in its proposed water park project,” Sablan said. “The company was subsequently issued another QC providing greater benefits.”
World Resort Saipan said its additional investments would amount to $14.7 million.
The “active” QC beneficiaries are SandCastle Saipan, whose certificate was issued on Jan. 11, 2002; Tinian Dynasty Casino & Hotel, Aug. 7, 2002; Hard Rock Café, Sept. 20, 2002; Tony Roma’s & Capricciosa, May 7, 2003; World Resort Saipan, Nov. 22, 2005; Bridge Capital LLC, Feb. 17, 2006; We Manage Call Inc., Nov. 28, 2005; and Saipan Laulau Development Inc., Sept. 26, 2008.
