The Saipan Department of Public Lands has terminated the lease agreement with the Macau-based Alter City Group Inc., which acquired a lease of a 152-hectares public land for its proposed $360-million casino resort project on Tinian in the Northern Mariana Islands.
According to the Saipan Tribune, DPL Secretary Teresita A. Santos issued a notice of termination on August 18th to Johnny Leong, the corporate representative of Alter City Group, for failing to cure the defaults in the lease agreement.
In October 2014, the Saipan Senate and the House of Representatives approved a public land lease between Alter City and DPL, with the lease agreement including an initial 25-year lease with the option to extend for 15 more years.
At the time, Alter City Group was initially planning to build a $200-million 300-room hotel-casino in Tinian, with an 18-hole golf course and a variety of entertainment options.
The project, however, has stalled, with the DPL issuing a notice of default and notice of violation to Alter City for failing to comply with the terms and conditions of the lease agreement.
However, in order to revert the decision, Alter will be required to complete the construction of a 500-room Plumeria Golf & Casino Resort, including 150 corporate villas, an 18-hole international golf course, a clubhouse with driving range facility, a medical center, farmer’s market, training center, retail services, conservatory, and staff dormitories.
Upon termination of the lease, Saipan land authorities may, upon 15 days of written notice, enter into the premises and take possession of all buildings, fixtures, and improvements and evict Alter City without liability of trespass. Alter City was given 30 days to appeal DPL’s decision.
Tinian’s only existing casino property, Tinian Dynasty Hotel & Casino, which filed for bankruptcy in 2015, remains closed with liabilities of over $250 million and after being fined $75 million for money laundering violations.
