Proposed Hotel Cita Di Mare Developers Ask For 75 Percent Tax Break for 20 Years

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Proposed hotel would be built behind the Acanta mall in Tumon.

Guam – PNC has received details of the requested tax breaks for a new proposed hotel in Tumon. PNC had to request for hotel’s qualifying certificate or tax break application from the Guam Economic Development Authority via the Freedom of Information Act.

The JMSH group wants to begin construction on a four tower hotel behind the Acanta mall in mid 2016. The project which will be called the Cita Di Mare hotel is owned by Hee K Cho and Maria Minsook Cho. The $133.1 million dollar project will encompass 7.4 acres and will have a total of 500 guest rooms in four towers ranging in height from 13 to 18 stories. The plans are to have retail sales in a 25 thousand square foot shopping arcade gift shop and convenience store.

The developers are asking for a 75 percent corporate tax break for 20 years, a 50 percent business privilege tax break for 20 years, a 100 percent real property tax break for 10 years and a 100 percent use tax break for ten years.

According to their application. They will make $23.5 million in gross income and $26.5 million in their 5th year. The project plans on creating 413 full time jobs. Their target demographic is what they refer to as trendy travelers from Korea and China. They are hoping to open between December 2018 and December 2019.

 

 JMSH also owns the Guam Holiday Resort and Spa the Garden Villa Hotel the Alupang Beach Towers and the Mai’ana Airport Plaza as well as the Rota resort and Country Club. 

2 COMMENTS

  1. I’m from the opinion that we need don’t need anymore hotels in Tumon. It would be foolish to think that offering this business a tax break for the next 20 years is the right thing to do. They would argue that their business would create over 400 jobs and generate $23.5 million in gross income and $26.5 million in their 5th year. How do they know this? Do they have a crystal ball. If there is to be a tax break, 75% seems a bit high. Either lower the rate to 25-50% or reduce the term of the tax break.

  2. I’m from the opinion that we don’t need anymore hotels in Tumon. It would be foolish to think that offering this business a tax break for the next 20 years is the right thing to do. They would argue that their business would create over 400 jobs and generate $23.5 million in gross income and $26.5 million in their 5th year. How do they know this? Do they have a crystal ball. If there is to be a tax break, 75% seems a bit high. Either lower the rate to 25-50% or reduce the term of the tax break.

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