Lawmakers hold village hearing on proposed 40-year Elan lease for Marpi resort; residents raise cultural, environmental and financial concerns

Senate and House committee leaders held a public hearing at the Tomahawk Youth Center in Saipan to receive community comment on a proposed lease for the former Marianas Resort that would allow the Elan Group to operate a hotel and golf resort on roughly 449,221 square meters for 40 years with a possible 15-year extension.

"We are here today to receive comments and testimonies from members of this community regarding the proposed lease agreement for Maranas Resort," said Senator Karina L. McGovernor, chairwoman of the Senate standing committee on resources, economic development and workforce, at the start of the hearing. The committee opened the floor to public testimony and said it would consider comments as it deliberates.

The hearing drew a small in-person turnout and focused on several recurring concerns: the scale and duration of the lease, local access to lease documents, possible environmental impacts (including wetlands and water supplies), the financial capacity of Elan Group to complete the project, and whether the proposal would deliver benefits to local residents.

"For a decision that's going to last generations, we really shouldn't rush through it," said Sheila Babauta, a Precinct 4 resident, who said she opposed the lease and urged community-led alternatives for the property such as cultural programs, agricultural uses and ocean research. Babauta also said the project could increase pesticide and chemical use in nearby areas if a golf course is rebuilt.

Chairman Angelo Camacho, speaking for the House side, summarized the proposal as "to operate a hotel and a golf resort complex with a total area of a 449,221 square meters in Marpee ... for a term of 40 years and an additional 15 years extension if approved by the legislature." He and other committee members said Elan has proposed roughly $46,000,000 in public benefits and plans to invest about $220,000,000 in private capital to build hotels and related facilities.

Committee members and public speakers highlighted specific items Elan listed as public benefits: renovating the existing baseball field in Marpi (with a proposal to build a replacement field elsewhere), repairing and renovating a public swimming pool, building a cultural center open for public use, constructing a small-scale mall at the racetrack site in Murphy, and funding homestead infrastructure in Lascona. Representative Joel Camacho and others cautioned that one of the proposed baseball-field sites is covered by a TOA with the Native Sports Association and contains wetlands that could trigger Army Corps of Engineers and EPA review.

Several committee members raised questions about Elan's current finances and operational stability. The committee said it has requested audited financial statements for 2024 from the Department of Public Lands (DPL) and intends to call DPL and Elan back to provide financial updates. "When you start reducing your workforce ... that's a sign of some type of financial stress," a committee member said, and lawmakers said they will review updated financial documents before making a decision.

Committee members also emphasized outreach and additional hearings. The joint committee announced a follow-up public hearing scheduled for Thursday at 5:30 p.m. at GTC/San Roque Elementary School (sometimes referenced as "GTC, Sanroqui" in the record) and encouraged written and in-person comments through that date. Staff confirmed that the proposed lease is a public document and that copies are available from committee members or the legislature.

No formal vote on the lease occurred at the hearing. The committee closed the public comment portion and moved to other agenda items before adjourning at 6:31 p.m.

Next steps identified in the hearing record include: additional document requests and review (audited 2024 financials), another village hearing, and invitations for DPL and Elan to appear before the committee to address financial and implementation questions.