Suwaso, which runs Coral Ocean Point Golf Resort in Koblerville, is now owned by local attorney Vince DLG. Torres as the company’s board chairman and Japanese businessman Yusuke Fumoto as president and CEO. The vice chairman is Tinian’s Philip Mendiola-Long and their business partner is China’s Jia Tie Liang.
Of the House members, only Rep. Ramon S. Basa, Covenant-Saipan, abstained while Rep. Edmund S. Villagomez, Covenant-Saipan, was absent. The 17 other House members voted yes.
Among the senators, Sen. Ralph DLG. Torres, R-Saipan, abstained while Sen. Luis P. Crisostimo, Ind.-Saipan, voted “present.” The seven other senators votes yes. Senator Torres is the brother of attorney Torres.
Rep. Stanley T. Torres, Ind.-Saipan, who had expressed opposition to the deal, walked out of the closed-door leadership meeting that delayed the joint session for more than three hours. The session was scheduled for 2 p.m., but the House leadership gathered in Speaker Eli D. Cabrera’s conference room while the senators, the House minority bloc, the Suwaso Corp. owners and members of the community waited in the House chamber.
Variety learned that during the closed-door meeting, the House leadership members had a phone conversation with Fitial who urged them to postpone the discussion on Suwaso’s land lease extension.
During the session, which ended at 8 p.m., Department of Public Lands Secretary Oscar M. Babauta briefed lawmakers about Suwaso’s original land lease deal made in Aug. 1986 and everything that had transpired until attorney Torres and his group bought the company last month.
Babauta then reiterated the support for the land lease extension he earlier made in his Aug. 4 letter to Senate President Paul A. Manglona, Ind.-Rota, and Speaker Cabrera, R-Saipan.
Under the draft lease agreement, Suwaso will pay DPL a guaranteed annual minimum rent of $110,000 for the sixth five-year period. Suwaso will then pay the government 11 percent of the fair market value of the land in the seventh year, and 12 percent in the eighth. “These rentals shall be paid annually in advance or before the first day of January of each year.”
Suwaso will also submit plans to construct, expand and renovate COP.
Within 240 days from the start of the lease extension, the company “shall submit to DPL evidence of financing sources for upgrades, new equipment, furniture, vehicle, alternative energy assessments, construction, development, renovation and construction of 200 more rooms and other amenities.”
Babauta said DPL and Suwaso “fully understand that this draft is subject to change upon matters that DPL deems necessary to change within the 15-day period. If Aug. 10, 2011 comes and DPL does not change the terms and conditions of the draft, then, draft shall become final, which shall then be sent to the Legislature for approval.”
Joint Resolution 17-5 reiterates the contents of this draft land lease agreement.
The joint standing committee report of Rep. Joseph M. Palacios, R-Saipan, and Senator Torres recommended the approval of the land lease deal.
Attorney Torres told lawmakers that his investment in one of Saipan’s premiere golf resorts “is important to me because I’m a local, I’m part of our family.”
He added that whatever happens with his investment in COP he and his family will be the first ones to suffer.
Former Rep. Joseph C. Reyes, who was among those who witnessed the session, said considering that “there is money that is surely going to be deposited in the bank, I think it will help us a lot,” referring to COP’s land lease extension.
Saipan and Northern Islands Municipal Council Chairman Ray Blas Camacho also expressed his support for Suwaso, saying it promises more job opportunities for locals.
A local resident, Kevin Guerrero, said the new Suwaso Corp. is community-owned, adding that he encourages other locals to invest in the CNMI. “I want every penny earned to stay here on this island,” he said.
Jose Kiyoshi of Tinian encouraged lawmakers to support local enterprises.
Attorney Torres’ wife, Rowena, said she had never before seen her husband devote so much time and effort on a project.
She said her husband had stressed himself too much that she herself went to the governor’s house to ask for Fitial’s support.
Vice Speaker Felicidad T. Ogumoro, Covenant-Saipan, asked attorney Torres if his company would “share” its investment with people of Northern Marianas descent.
The lawyer said he and his partners had not thought about it yet but “it’s something that we will look at.”
Basa asked attorney Torres where will his company get the money. The lawyer assured him that “we are ready to move.” The bank account is ready, he added. He also assured lawmakers that he won’t sell the company after getting the land lease extension.
For his part, Senate Floor Leader Pete P. Reyes, R-Saipan, told the presiding officers that Senator Crisostimo might have a conflict of interest.
Reyes said there were documents indicating that Crisostimo attempted to buy Suwaso shares.
In a telephone interview shortly after he left the legislative building, Representative Torres said he disagreed with the decision to move ahead with the joint session. “I don’t want it today. We can move it until Wednesday next week,” he said.
Torres also doubts the validity of the lease.
He said Suwaso received a 15-year lease extension 1992. “Why are they being given another 15 years?” he asked. But DPL told lawmakers that Suwaso had no existing 15-year lease.
Rep. Froilan C. Tenorio, Covenant-Saipan, in an interview said they met for three hours because the leadership wanted to make sure they had enough votes to approve the deal.
He said at least three of the members wanted to wait until Wednesday next week to vote on the land lease extension. The three said if the joint session would move ahead they would abstain.
“But it turned out that only one abstained,” Tenorio noted.
