PRESS RELEASE “Settlement by DPL and Kan Pacific Paves Way to Completion of RFP”


The Department of Public Lands is pleased to announce that it has resolved its dispute with Saipan Entertainment LLC, Kan Pacific Saipan Ltd. and Imperial Pacific International regarding Kan Pacific’s interest in the Mariana Resort and Spa property and DPL’s RFP for a new lease. In that action DPL alleged that the agreement between Kan Pacific and Imperial Pacific announced in December was an attempt by Imperial Pacific International to eliminate competition in our RFP; and that Kan Pacific’s previous assignments and subleases of public land were void because Kan Pacific failed to comply with its lease and seek DPL’s prior approval.

As part of that settlement, Kan Pacific Saipan, Ltd. represented that it did not have the financial ability to submit a proposal that was responsive to DPL’s Request for Proposals. In dismissing all claims brought in the lawsuit, Kan Pacific and Imperial Pacific agreed to each pay $500,000 to DPL to resolve its claims. Moreover Kan Pacific agreed to terminate its lease early if the winning bidder under RFP 15-RED-006 requests its lease to commence before Kan Pacific’s natural expiration in 2018.

DPL Secretary Marianne Concepcion-Teregeyo remarked, “DPL is pleased to resolve this matter and to remove any barriers to completion of its RFP on time and without interference. This settlement reaps a significant reward for the Commonwealth, removes the threat of litigation by Kan Pacific to prevent award of a new lease to the winning bidder, and paves the way for DPL to begin collecting significantly higher rents for our public lands in Marpi as soon as July or August of this year”.

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