CPA offers Tinian Dynasty Payment Plan

Commonwealth Ports Authority has created a payment plan that would help the Tinian Dynasty Hotel & Casino finally settle its volunteer responsibility, but the company has yet to respond to the agency's offer.

Edward Deleon Guerrero (Executive Director) told Saipan Tribune yesterday that the CPA board recently affirmed its decision to collect in full the $310,000 Tinian Dynasty owes the agency.

Deleon Guerrero said yesterday, “There will be no write-off or forgiveness of any kind because we have a bond indenture to satisfy. CPA has already proposed payment plans to the company but it has yet to make a decision. Negotiation on the payment plan is ongoing between CPA and Tinian Dynasty.” He refused to luxuriant on the details of the payment options, but assured that this will give Tinian Dynasty some “flexibility.”

“We look at the capability of the company to pay. .We will not establish a payment plan that is unrealistic.”

The $310,000 responsibility was the result of an unrealized settlement agreement between CPA and Tinian Dynasty's shipping arm, the Tinian Shipping & Transportation Inc. The ports authority had sued the shipping company for breach of contract relating to its failure to pay passenger fees as required in their June 2006 lease agreement. Citing financial challenges, Tinian Dynasty had asked the ports authority to write-off the total responsibility with a one-time $100,000 payment. It wants to settle this obligation to attract potential investors who plan to revive the operation of the Tinian ferry service just as soon as Tinian Shipping's “books” are cleared of this debt.

Tinian Shipping's ferry service between Saipan and Tinian was suspended in March 2009 because its vessels needed repair as well as comply with the American Bureau of Shipping's regulations. This resulted in Tinian residents and tourists relying exclusively on air transportation to travel to and from Tinian.

Tinian Mayor Ramon Dela Cruz had earlier appealed to the CPA board to write off the $310,000 debt, saying that Tinian Dynasty has been the sole casino operator on island for more than 13 years and that it continues to render funds.