THE Department of Public Lands has drafted a 40-year land lease agreement with Mariana E-Land Corp. pertaining to the former Mariana Resort & Spa property in Marpi.
Of the six interested investors, E-Land topped DPL's evaluation of their proposals. The other investors that responded to DPL’s request for proposals or RFP were Ocean Bee LLC, Marianas Global Inc., AMCON LLC, Hanmaek Saipan and IH Group.
On Saipan, E-Land operates Kensington Hotel Saipan, the Pacific Islands Club, and Coral Ocean Golf Resort.
DPL Secretary Marianne Concepcion-Teregeyo on Thursday provided E-Land president Hosik "Brian" Shin a copy of the proposed land lease agreement for the 144.9 hectares of public lands which include a golf course.
Because it involves public land exceeding five hectares, the proposed land lease deal requires the approval of three-fourths of the members of the Legislature in a joint session.
The property, which Japanese-owned Mariana Resort & Spa leased for 40 years until it shut down on Sept. 30, 2018, comprises 10 different parcels of public lands.
Concepcion-Teregeyo asked Shin to review the draft lease agreement and indicate his acceptance as soon as possible.
She also said that DPL will forward the draft lease agreement to the Legislature for its review and approval.
"We estimate this timeline to take approximately 90 days, but we do not have any control over the Legislature's schedule. The sooner we receive your documents, the sooner we can initiate the process," she told Shin.
Concepcion-Teregeyo also informed Shin of the following administrative requirements:
• Payment of $150,000 annual base rent based on 1% of the appraised market value.
• Payment of $250,000 for security deposit, which is due upon execution of the lease agreement and will be maintained for the duration of the lease term.
• Payment of $600,000 for security deposit on Phase 1 representing 5% of the total cost of the proposed project. The funds will be held by DPL to secure construction start up, and remediation costs. This amount can be drawn down to use during construction.
• Evidence certifying the ability to procure liability insurance with a minimum coverage of $1 million in the aggregate, which must co-insure DPL and the CNMI government (actual insurance policy will be due within 30 days of the lease commencement date).