$3.5M for La Fiesta was split?

Only half of the $3.5 million for which the Northern Marianas College was supposed to have bought La Fiesta shopping mall actually went to the purchase of the facility, a document obtained by the Saipan Tribune showed.

According to a copy of the minutes of an Aug. 9 meeting of the college council, the $3.5 million that was believed to have been paid to Hotel Nikko and Cocos Lagoon Development Corp. did not all go to the purchase of La Fiesta. Rather, $1.75 million was paid for the La Fiesta mall, while the other $1.75 million went to the lease payment.

This means that NMC owns only half of the La Fiesta building. Further, the college now owes the landowner $1.75 million less than the $4 million that it owes for the 20-year lease.

According to the minutes, NMC president Antonio Deleon Guerrero only learned of this information at a meeting with Hotel Nikko executive vice president Hideo Nishigori.

“With this info, La Fiesta is not just an asset, it is a liability in our books. It changes the outlook on our financial and accreditation perspective. We need to show how we can take care of our liabilities,” a portion of the minutes read. “If we do not want to make payment, we lose everything—the building and the lease. If we want La Fiesta, we need to begin negotiations with landowners immediately.” The transcription of the meeting did not indicate who made this statement.

The Western Association of Schools and Colleges has placed NMC’s accreditation on warning status amid pending issues with the college’s financial condition.

In an interview, however, Deleon Guerrero dismissed the information on the minutes as “inaccurate.” The copy of the minutes—which has been sent out by email to all the three NMC campuses—was “a draft,” he said.

Deleon Guerrero maintained that the entire $3.5 million grant money from the Governor’s Office was paid for the purchase of the shopping mall. This amount was split between Hotel Nikko and Cocos based on their respective rights to the building.

Nishigori, who is negotiating with NMC regarding La Fiesta, refused to make a categorical reply when asked to confirm Deleon Guerrero’s statement. “I’m not the person who can say that,” Nishigori told the Saipan Tribune over the phone.

Rep. Justo Quitugua, chair of the House Committee on Education, said he has never discussed the payment for La Fiesta with NMC officials. He noted that the funds came from the Governor’s Office, not the Legislature.

In a special meeting tentatively scheduled for Sept. 11, the NMC Board of Regents is expected to make a decision on how it plans to utilize La Fiesta, Deleon Guerrero said.

The college president is now meeting with various decision-making bodies in the college, such as the College Council, Staff Senate, Faculty Senate, and the Associated Students of NMC, to hear their opinions on the La Fiesta issue.

“I will be making a proposal to the board for their review and approval. I hope that whatever their decision will be, it will be a win-win solution for all the stakeholders involved, including the faculty, personnel and students, as well as the government and the whole community,” Deleon Guerrero said.

He declined to elaborate on the proposal, but he said that all options will be considered.

At least two groups have expressed interest in utilizing La Fiesta, although none of them has submitted a formal response to NMC’s request for proposals.

One is a California-based firm that wants to lease portions of La Fiesta. The other is the University of Guam, with which NMC is entering into a memorandum of agreement to establish a UOG center at La Fiesta.