ASDC board to set time frame to develop rest of Rainmaker hotel

by Fili Sagapolutele
Samoa News Correspondent

The American Samoa Development Corporation (ASDC) board is scheduled to meet this month to discuss, among other things, setting a time frame on when Niu Technology (NT) is to start developing the rest of the Rainmaker Hotel, the only ASDC asset.

On his weekend radio program, Gov. Togiola Tulafono voiced his disappointment over the lack of development for the rest of the hotel saying that it has been years since the contract development with a local firm was signed but he has yet to see any work done.

Togiola said he has heard there is a long delay for the redevelopment project but he hopes it will move forward soon. The governor was responding to a caller, who said the 10th Pacific Arts Festival is set for the summer but the rest of the Rainmaker Hotel is an eyesore and something should be done to clean up the property.

The Development Bank of American Samoa, as a government entity, owns 80% of ASDC shares. The rest of the shares are owned by minority shareholders, the governor reminded listeners.

Responding to Samoa News inquiries, DBAS president Utu Abe Malae said, "We are disappointed too that Niu Technology is taking so long to get started."

"We are happy to hear from interested investors with the financing at hand to develop this beautiful location in the event NT cannot make a go of it," he said.

Asked if there is a deadline or time frame given to NT to develop the central and harbor wing parts of the hotel, Utu said, "We haven't set a deadline yet but will do so at the next board meeting this month. Technically, NT is already in default of the lease agreement."

(NT, owned by company president Jeffrey Tuiasosopo, entered into a 44-year sublease agreement with ASDC last year.)

Asked if ASDC will entertain a new proposal from a company with financing, Utu said, "Yes, of course we will welcome ideas backed up by solid financing."

Last month, the Project Notification and Review System (PNRS) approved a land use permit for NT. According to the company's permit application, the proposed land use is for both commercial and cultural uses that will include hotel facilities and a research center to which all schools will be given access.

The company plans to have the hotel facilities surrounded by a cultural center and hopes to have this completed before the 10th Pacific Arts Festival, set for July 20-Aug. 2.

Reach the reporter at fili@samoanews.com.

 © Osini Faleatasi Inc. dba Samoa News reserves all rights.

 

 

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