The Department of Public Works of the CNMI has found that Imperial Pacific International’s unfinished hotel and casino building in Garapan, Saipan, is showing signs of wear and tear some five years after construction was halted but does not pose any immediate threat to its neighbors.
The assessment, conducted in April, followed a successful US$12.95 million auction bid by a company called Team King Investment (CNMI) LLC to acquire IPI’s assets, including the stalled hotel development, a leasehold interest on almost 20,000 square meters of land and an option to acquire IPI’s casino license. It is unclear if Team King plans to resume development of the property, with cost requirements to complete IPI’s original plans estimated at around US$150 million. The sale itself has been delayed due to a dispute over the ground lease.
According to a report by Marianas Variety, the DPW’s inspection found that the building structure “does not pose an immediate danger to surrounding neighbors or to the general public” despite having faced exposure to Saipan’s extreme weather conditions since construction stalled in mid-2020. The casino itself closed in April 2020 due to the COVID-19 pandemic.
Building Inspector Supervisor Ignacio C Santos added, “If IPI continues to neglect maintenance of the finished areas, and construction on the main structure remains dormant, it will only accelerate the building’s dilapidation and corrosion, which may compromise its structural integrity in the future.”
Assessment of the building’s heating, ventilation, air-conditioning system and fire alarm system has been difficult because they have not been used for some time, while an unfinished hotel tower facing the water shows some surface cracking that “may be of some concern”.
IPI filed for Chapter 11 bankruptcy in April 2024, citing more than US$165.8 million in liabilities. Aside from the recent auction of the building and land, the company has also seen many of its interior assets sold off by receivers to pay down debt.
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