PACIFIC ISLANDS REPORT

Pacific Islands Development Program/East-West Center
With Support From Center for Pacific Islands Studies/University of Hawai‘i


INVESTOR SEEKS OK TO REOPEN SAIPAN BREWERY
South Korean party seeks zoning change

By Gemma Q. Casas

SAIPAN, CNMI (Marianas Variety, April 17, 2008) –A South Korean investor wants to open a brewery on Saipan, but is asking the government to change its zoning classification so the company can operate at the site next to the defunct Wine Cellar on Capital Hill.

The first and only brewery on Saipan opened in 1994 next to Coffee Care on Capital Hill, but it shut down after only a year in business.

Rep. Francisco S. Dela Cruz, Covenant-Saipan, and five other lawmakers introduced yesterday House Resolution 16-13 asking the CNMI Zoning Board to change the present zoning classification of Vestcor Commercial Building, where the old brewery is located, from "village commercial" to "mixed commercial."

"An investor is interested in re-opening the brewery to brew a beer brand to market locally and export to Korea," the lawmakers stated in the resolution.

They declined to identify the investor.

"The proposed brewery operation is small scale and environmentally friendly and…the economic reality in the CNMI requires avenues in enticing new investments to replace the demise of the garment industry," they added.

The lawmakers said an area classified as "village commercial" cannot accommodate a manufacturing activity.

Wine Cellar, the CNMI’s only distributor of wines and beers from Australia, shut down its operations in February after 14 years of doing business on Saipan.

Its owner said the CNMI government should consider easing the tax burdens on importers to entice them to do business on island.

The CNMI imposes an excise tax of 1.67 cents per fluid ounce of beer whether it is manufactured locally or imported.

Importers are charged an alcoholic beverage container tax of 5 cents per container and profit tax.

Marianas Variety: www.mvariety.com

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