Loyal customers prompted opening of dealership on Saipan, condominium issue addressed

BY MARK RABAGO
Saipan Correspondent

PUERTO RICO, Saipan — Atkins Kroll Saipan decided to open an AK Saipan Toyota Lexus Showroom and Service Center in the Northern Mariana Islands not only due to demand for Toyota vehicles, but also because many local customers have been snatching up the higher-end Lexus models.
“We've been here for 55 years, and we have almost 50% market share with Toyota, and what we have found is that a lot of customers on Saipan actually fly to Guam to ship a Lexus car over from Guam and pay the additional expenses,” Alexander Hammett, managing director for South Asia and the Pacific; told the Journal on March 10 at the groundbreaking.  

For that loyal customer base, the new dealership aims “to provide a better rate and faster turnaround for product availability to our customers by having a facility on site,” he said.

The new $23 million dealership will encompass 43,800 square feet of prime real estate along Middle Road/Chalan Pale Arnold.
Hammett also touched on the recent ruling of the NMI Supreme Court in the legal case against AK.
On March 9, the Supreme Court ruled in favor of Anaks Ocean View Hill Homeowners Association in its appeal, which was to vacate the Superior Court’s previous decision to dismiss its petition against the Zoning permit issued to Atkins Kroll for the Toyota/Lexus dealership and vehicle repair facility.
The Supreme Court found that the association’s petition was filed within the time required and ruled that the Superior Court’s previous dismissal should be set aside. The case now goes back to the Superior Court for its review of the Zoning Board’s decision.
Atkins Kroll first applied for a permit with the Zoning Board on Jan. 4, 2022, to build the facility next to the Anaks Condominium complex in Puerto Rico. On March 18, 2022, the Zoning Board approved Atkins Kroll’s permit and issued it on April 13, 2022.
Anaks, however, filed a petition to challenge the permit in the Superior Court but the Superior Court originally dismissed the petition because the court found that it was untimely filed.

The Inchcape executive saw positives in the court decision, he told the Journal.
“The court actually denied the motion of stay, which is allowing us or granting us the ability to start construction, which we're doing. And as we've always said, we were a very responsible business. We're making sure that we're looking after the community’s well-being through this facility, as well as looking after the environment,” Hammett said.

“So we'll let the lawyers decide on the outcome of that, but our commitment is to the community and to our customers, and obviously to the environment as well,” he said.

Hammett also reiterated that Atkins Kroll’s architects and project managers – ARI Partners, have already obtained the necessary permits and took meticulous steps to meet all U.S. Environmental Protection Agency standards in designing the new facility.

“We've been going through the process for over a year, working hand in hand with the Anak’s legal counsel. My message to them (the homeowners) is we're a very responsible business and we're looking after the wellbeing of the community.”

He said the new AK Saipan Toyota Lexus Showroom and Service Center does just that. 

“We've worked with every single department agency to ensure that we're doing the right thing, not only for the community, but for the environment. In my view, this is a very eco-friendly and safe facility for the CNMI.” All of the AK permits are valid, he said.  

Alex Yap, president of Atkins Kroll; also assured residents of the surrounding community that the new dealership will be environmentally friendly and won’t negatively affect their day-to-day lives. 
“As environmental concerns are one of our four pillars, we conduct responsible business. It is also important to our company that the facility be environmentally friendly, so we included features such as rainwater harvesting, solar panels for energy offsetting, and low-noise-generating equipment.”
Yap also shared details of the new 43,800-square-foot facility’s features.
“The Toyota and Lexus showrooms will be sufficiently spacious at 14,244 square feet combined, which is more than double the size of our current Toyota showroom in San Jose.”

Yap said the new dealership will also serve as AK Saipan’s corporate offices, will house an automotive service and body repair shop that will be able to service personal and commercial vehicles, include energy-saving fixtures throughout the property and utilize the latest tools and technology to improve employees’ overall work experience. 
The high-tech vehicle repair shop will be close to 30,000 square feet in area and will include 14 vehicle service bays. The auto body shop will consist of nine repair bays and a contained and fully ventilated internal paint booth.

Gov. Arnold I. Palacios also spoke during the event and congratulated Atkins Kroll for the groundbreaking of their state-of-the-art facility. He thanked the company for always being in the forefront in the islands’ development since opening shop in 1968 and for “their philanthropic contributions to the islands.
He said the groundbreaking also holds promise that bright things are ahead for the NMI. “Not only will this project benefit the future of the CNMI through the enhanced revitalization of this area, but it will also provide jobs during the construction phase and after its completion, supporting the automotive needs and the economic growth of our community, which is an important part of our daily lives,” Palacios said.

The groundbreaking was also attended by Lt. Governor David M. Apatang, members of the NMI Legislature and representatives of the business community, as well as AK executives and staff (See “Around Town” in the March-April issue of Guam Business Magazine.)

In February, Atkin Kroll Saipan sold a total of 67 vehicles, which translates to a nearly 67% market share of the total 109 units sold that month.

AK opened a new $1 million-plus Lexus showroom in Guam on June 10, 2021, according to Journal files. ARi Partners Architecture was also involved, as the design consultant for the 3,860 square foot showroom. The remodeling of the Guam Lexus Showroom was preceded with a relocation of offices, followed by upgrading of the BMW and Toyota showrooms.

The group also opened a Toyota dealership in Palau on Sept. 5, 2022, at the Surangel Supercenter in Airai, according to Journal files. mbj