The company originally requested $27.7 million in tax breaks but this was scaled down to $18 million by the Commonwealth Development Authority after consultation with the Division of Revenue and Taxation.
Under its approved qualifying certificate, Laulau is entitled to 100 percent rebates on GRT and excise taxes in the next 25 years.
It will be required to contribute not less than $150,000 annually to health and educational programs and activities, excluding educational tax credit donations.
Laulau expects $387 million in investment benefits for the CNMI over a 25-year period.
The company wants to build a “luxurious Golftel Towers equipped with state-of-the-art equipment and facilities for high-end golf enthusiasts.”
Golftel Towers will have 273 rooms, two club houses, villas and other amenities.
The government has approved Laolao’s 40-year land lease for $2.5 million.
The company said it was taking a “big risk” in doing business here considering the bad state of the CNMI economy, and the federal minimum wage and immigration issues.
Laulau’s parent company is the Kumho Group of South Korea which also owns Asiana Airlines.
Laulau’s qualifying certificate is the 13th to be approved by CDA since it implemented the QC program which aims to bring in new investments to the islands. It was later amended to include existing businesses that have made substantial improvements to their facilities.
The other QC recipients are SandCastle Saipan, Tinian Dynasty Hotel & Casino, Hard Rock Café, Spring Water Inc., Hyatt Regency, Rota Resort, Tony Roma’s, Dai-ichi Hotel, Saipan World Resort, We Manage Call and Bridge Capital LL.
