Saipan Laulau is asking for $27 million in total tax breaks under CDA’s qualifying certificate program.
According to H.R. 16-62, which was introduced by Rep. Ray N. Yumul, R-Saipan, the governor should not be a part of the negotiating or requesting of contracts between CDA and a QC applicant as the governor grants the final approval of the agreement between CDA and the applicant.
On Aug. 1, Saipan Laulau was granted a QC for a 100 percent business gross revenue tax rebate for 25 years; a 100 percent rebate on excise tax for the duration of the project construction; and 100 percent rebate for developer’s tax for the duration of the construction, for a total benefit of $18 million in tax breaks.
The only tax relief not provided to Saipan Laulau was an exemption from the alcoholic beverage tax.
H.R. 16-62 noted that the company has also been allowed to pay a low rental rate of $103,000 — a substantial decrease from the original amount of $384,000 for the public property where the Saipan Laulau resort is located.
The benefits of the current QC granted to Saipan Laulau are sufficient as an investment incentive, the resolution stated.
It added, “In this ailing economy, the government continues to lose its tax resources with the closing of businesses, [and] granting additional terms to the QC of [Saipan Laulau] in addition to the benefits already granted to it will only add to the burden of the CNMI’s economy.”
The 15th Legislature approved a new 40-year, 161-hectare land lease agreement with Saipan Laulau, which manages the Laolao Bay Golf Resort.
Saipan Laulau wants to build the Golftel Towers which will have “state-of-the-art equipment and facilities targeting high-end golf enthusiasts around the globe.”
