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Official: IPI wants to be allowed to sell hotel or get new investors

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THE proposed amendments that Imperial Pacific International submitted to the CNMI Lottery Commission include a provision that will allow IPI to sell the hotel or partner  with new investors, CNMI Lottery Commission Chairman Mark Rabauliman said.

The amendments proposed by IPI  to its agreement with the CNMI includes a 50% cut in the $15 million annual casino license fee, a smaller amount of community benefit fund and an extension of the deadline to complete the entire casino resort project.

It also includes a provision, stating: “For the avoidance of doubt, the licensee is not in any way restricted or prohibited from inviting investor(s) and/or partner(s) or a management company or companies to participate in any of the construction, operation or in acquisition of ownership of any structure in any part of the initial gaming facility and/or the integrated resort.”

“As an example,” it added, “should licensee want to separate the hotel from casino operation and sell the hotel portion to another company of its choice, the licensee may do so,” the proposed amendment states.

Rabauliman said amending the license agreement involves a review process, adding that the request of IPI has been forwarded to the Attorney General’s Office.

IPI also proposed that “in the event that the licensee identifies suitable property for the required land which is public land, the Commonwealth will provide assistance and work with other relevant government entities, agencies and departments to secure such public land as soon as practicable, and in no event not longer than four months after identification. The Commonwealth will assist licensee in securing terms of any lease that takes into account the large scale and nature of development and on commercially practicable terms (which may not be standard terms) that are not onerous and not deter interests of investors or partners.”

In addition, IPI proposes that the “Commonwealth shall assist in securing appraisal of such land within 30 days of identification. Should there be any disagreement over the terms of the public land lease, the terms shall be based on and to the fullest extent possible, the same as those of the public land lease already in place for the initial gaming facility. Should there be a refusal to execute the public land lease for Phase One of the licensee development proposal requirements by any party, this provision may be specifically enforced by the courts of the Commonwealth and the courts shall have the jurisdiction and authority to compel the signature of the refusing party on the public land lease for Phase One of the licensee development proposal requirements. Any delay in meeting the provisions of this section that [is] not the fault of the licensee shall entitle the licensee to extend the time for payment of the annual license fee set forth under Section 5 on a pro rata basis over the time of such delay.”

 

 

 

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