Options narrowed down to 2 on what to do with La Fiesta

Northern Marianas College president Antonio Deleon Guerrero yesterday expressed concern that NMC’s remaining 19-year leasehold on La Fiesta mall may pose a problem in making long-term plans for the property.

Deleon Guerrero said this as he reported that NMC has now narrowed down its plans for La Fiesta to two best options.

“The first is to continue on with the plan to convert La Fiesta from a shopping mall into a college campus,” he said. “The second is to send out a request for proposal to solicit potential investors that would develop La Fiesta.”

He ruled out the earlier plan to get a loan from the U.S. Department of Agriculture to finance La Fiesta’s renovation, saying the Board of Regents is “not too interested in creating a liability for the college.”

The board, he added, will be meeting on Sept. 15 to discuss the two remaining options.

“I would like them to make a decision as soon as possible,” Deleon Guerrero said, adding that he wants to start working on whatever the board chooses to do. The Legislature itself has asked for direction on the La Fiesta issue, he added.

At least $10 million is reportedly needed to cover the costs of renovation and fixtures that are needed to make it a functional college campus.

“[The entire issue of deciding what to do with La Fiesta] is all a question of timing. Is it feasible for the government right now to build a $10-million campus?” he asked. “And is it wise for the CNMI to invest $10 million on a property that has only 19 years remaining in its leasehold? It’s going to be really temporary.”

Deleon Guerrero said he doubts that the CNMI would be able to recoup its $10 million investment within 19 years.

But $10 million, he noted, might not be too big an amount to businessmen who may be interested in investing in La Fiesta. He cited Filipino tycoon Lucio Tan, who owns a chain of shopping malls in the Philippines, as well as Micronesia Mall on Guam.

NMC purchased the La Fiesta property in Aug. 2003 for $7.5 million, using a $3.5 million federal grant to the Governor’s Office as deposit. The remaining amount of $4 million is payable in 20 years at $200,000 annually.

Earlier this week, Deleon Guerrero met with the Legislature to ask for additional $350,000. This will cover NMC’s first annual payment of $200,000 for La Fiesta, which is due on Oct. 31, and a $150,000 operational budget for the mall for the period between October and December.