At issue is House Resolution 16-62 which urges the Commonwealth Development Authority not to grant additional tax breaks to Saipan Laulau Development Inc., a subsidiary of Kumho Asiana.
Fitial said Yumul’s nonbinding resolution is “reckless.”
The House adopted by a 10-7 vote yesterday the revised version of the resolution.
Yumul, R-Saipan, said “this issue is really about protecting our taxpayers. When we were in the 15th Legislature, we gave [Saipan Laulau] a reduced [rent for a] brand new 40-year lease. We were sold on the promise that we’re going to have new flights, more seat capacity, more tourism dollars.”
He added, “We were even told through meetings with [the Marianas Visitors Authority] that we are going to see immediate impact [in terms of economic activities] of $23 million this fiscal year 2008,” he added.
Kumho Asiana, the parent company of Asiana Airlines, wants to turn the Laolao Bay Golf Resort into a modern and sprawling residential area within a golf resort.
The company projects to spend close to $70 million once the project is completed next year.
Yumul said his resolution is also sending a message to the Commonwealth Development Authority to carefully weigh things before granting an entity tax breaks under the qualifying certificate program.
The Korean won has weakened against the dollar and the South Korean stock market and banking and financial system have not been spared from the global financial meltdown and credit crisis, Yumul noted.
Asiana has committed more flights between South Korea and Saipan in the months ahead and upon completion of the golf resort project next year.
