DPL: Managaha concession awarded under 10-year TOA; resort leases face delays, terminations

The Department of Public Lands has awarded the Mañagaha Island concession under a 10-year temporary occupancy agreement to Sea, Air, and Island Leisure, while major resort leases across the Commonwealth—including Marianas Beach Resort, Rota Resort, and Kanoa Resort—remain in various stages of compliance review, termination, or re-solicitation, officials told senators during a Feb. 3 oversight hearing at the Senate chambers on Capitol Hill.

On Mañagaha Island, DPL Secretary Sixto K. Igisomar said the concession is not a lease but a temporary occupancy agreement, or TOA, granted exclusively to SAI. “Off in Mañagaha, we have already officially given the agreement, TOA, temporary occupancy agreement for the exclusive to SAI, which I believe stands for Sea, Air, and Island Leisure, which is a corporation under TanHoldings,” Igisomar said.

Short for S.A.I., the company draws its name from its focus on experiences across the sea, air, and island environments, positioning itself as a specialist in leisure activities that deliver distinctive and memorable vacations, according to its website.

Igisomar said the TOA term is “for 10 years,” and took effect “November or December of last year.”

“They’ll go fully operational,” he said, “the 15th of this month.”

Igisomar explained that a TOA differs from a long-term lease. “The Mañagaha is not a lease. It’s not a long-term lease. It’s a TOA,” he said. “It’s temporary occupancy.”

He added that the maximum TOA term was extended through regulation changes. “It used to be five years only… so that was changed to 10.”

S.A.I. apparently spruced up the property during the weekend in anticipation of the soft-opening on Feb. 15. TanHoldings Corp. VP of Business Development Ivan Quichocho invitations will be sent out for government and media soon.

On Marianas Beach Resort, lawmakers revisited prior notices of default and violations. Igisomar said all outstanding obligations have now been paid. “They’re up to date, fully up to date on the payment,” he said.

He later confirmed, “Whatever was asked for to be paid on the rental or additional rent, those are paid already… They zeroed out.”

The payments were cleared “by November, December last year.”

Rota Resort, however, has moved in the opposite direction. Igisomar said the lease process was terminated after the proponent failed to submit a required appraisal. “We asked them to send us the appraisals that they’re supposed to do because we don’t have an appraiser,” he said. “It took them forever too long.”

“By December, I terminated it and sent them official letters,” he said, adding that DPL is “already working with another investor for unsolicited proposal.”

Kanoa Resort also remains vacant after drawing no interest during a recent solicitation. “There was no response on the RFP from any vendors,” Igisomar told senators.

DPL has since opened the door to unsolicited proposals and may reissue the RFP if none materialize.

On lease pricing, Igisomar emphasized that base rent is tied to fair market value. “Base rent is a percentage of FMV,” he said, explaining that current regulations require “5% of FMV.”

FMV stands for fair market value.

“Kanoa Resort went out on 5%,” he added.

Beyond individual resorts, DPL said it is stepping up enforcement across government and public lands. “We’ve issued notices to every department to take back lands that they looked abandoned,” Igisomar said, naming multiple agencies.

He stressed that the policy is not punitive. “The intent is not to take away lands from our government entities,” he said. “The intent is… to utilize these properties as intended.”