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NMC behind in first lease payment for La Fiesta
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Posted on Nov 10 2004
The Northern Marianas College is now behind in its first annual payment of $200,000 for the lease of the La Fiesta shopping complex, as the transfer of the facility to the CNMI Executive Branch remains unofficial.
In an interview yesterday, NMC president Tony Deleon Guerrero said the memorandum of agreement signed by Gov. Juan N. Babauta and the college has yet to be finalized pending review by the Attorney General’s Office.
Executed two months ago, the agreement was supposed to have relieved NMC of all obligations over La Fiesta starting Oct. 1. These obligations include the annual $200,000 land lease and the mall’s operation, which averages $30,000 monthly after payment from tenants.
Earlier, NMC said the MOA could not be finalized pending the approval of La Fiesta’s original sellers. Deleon Guerrero reported yesterday that Hotel Nikko Saipan and Coco’s Lagoon Development Corp. have now agreed to NMC’s agreement with the governor.
However, the only reason now delaying the finalization of the transfer is the legal review being conducted by the Attorney General’s Office, Deleon Guerrero said.
“We are just waiting for the attorney general to review all documents related to the transfer and make sure everything is done legally. We expect it to be done within the next couple of weeks. Then we will sign another agreement making the transfer official,” Deleon Guerrero said.
Meantime, he said the initial $200,000 leasehold payment for La Fiesta is still outstanding. The first payment became due last Oct. 29, but Hotel Nikko and Coco’s Lagoon have reportedly agreed to provide the government a 60-day grace period to pay the due amount.
“We have already reminded the Governor’s Office that the first payment is due. They actually have until Dec. 29 to pay, but of course we don’t want them to stretch up to the deadline,” Deleon Guerrero said.
