In the lease contract with Department of Public Lands, Suwaso Corp. that runs the Coral Ocean Point Golf Resort in Koblerville was given 120 days to submit its proof of financial capability to comply with terms and condition in getting the 15-year lease extension.
The 120 days started on Aug. 11 and will end on Dec. 11.
The Legislature approved the lease extension after Suwaso Corp.’s new owners presented the lawmakers its revitalization plan which includes infusion of $22 million and construction of 200 new hotel rooms.
Variety learned that Suwaso Corp. has yet to submit its financial progress along with other documents required in the lease extension contract, since the new owners took over the company five months ago.
DPL Secretary Oscar M. Babauta in an interview yesterday said he is very positive Suwaso Corp. would heed the terms and conditions as provided for in the contract.
But given the CNMI’s economic condition, Babauta said people should realize the impact of that not only on COP but also on other hotels and golf resorts in the islands.
Like anybody else, he said COP has been affected by this “economic dilemma.”
Despite all these, Babauta said COP has not requested any reduction of rentals. There are investors in the islands which, unlike COP, continuous to stay “afloat” but have been requesting cuts in rental fees.
In a separate interview, Sen. Francisco Q. Cruz, R-Tinian said he would hate to hear the corporation saying that in the last minute that they failed to meet the deadline.
He recalled that among the commitments the new Suwaso Corp. made was to pay the arrears to the former owners of the company, the upgrades of facilities, beautification of the nearby beach and giving the public access to it.
With some of the remaining green keepers, the Suwaso Corp. has started to bush cut the grass and trim overgrown plants in the areas near the Unai Dangkulu beach.
But Cruz said he heard that there are other parties who will finance the renovation of the hotel. That is not in the lease agreement, the senator said.
Nevertheless, Cruz said in case, COP fails to meet the deadline in submitting its financial standing, “we must also allow reasonable time.”
“We have to be fair and mindful of the dire economic situation so not all anticipated plans can happen,” he said.
“I am in support of any development so that our economy will continue to climb,” Cruz added.
