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Quitugua: La Fiesta transfer to save NMC accreditation
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Posted on Sep 20 2004
House Education Committee chair Rep. Justo Quitugua said the ownership transfer of the La Fiesta facility from the Northern Marianas College was “the best option” to save the institution’s accreditation.
“It’s the best option for NMC at this time to prevent it from losing its accreditation [with the Western Association of Schools and Colleges],” said the lawmaker.
He noted that the college earlier failed to secure from the Legislature the $350,000 it needed as lease payment and operational expenses for the mall.
Quitugua expressed relief that the college had finally decided on the La Fiesta issue, noting that NMC had been unclear on the issue in the past months.
“For a long time, they didn’t know what to do with it,” he said.
NMC last week turned over the La Fiesta mall to the Governor’s Office. A memorandum of agreement, signed by NMC officials and the governor provides that the Governor’s Office will relieve NMC of all obligations over La Fiesta starting Oct. 1 this year.
These obligations include the annual $200,000 land lease and the mall’s operation, which averages $30,000 monthly after payment from tenants.
NMC would now arrange meetings with Hotel Nikko Saipan and Coco’s Lagoon Development Corp.—the original sellers of La Fiesta—to ask for their concurrence to the agreement.
This as the college expects a visit from WASC representatives this fall and is required to submit its progress report by Oct. 15.
NMC is currently on warning status by WASC following findings of unresolved financial woes at the college. WASC maintained the status last June and expressed its concern over NMC’s inability to maintain two campuses in view of its acquisition of La Fiesta last year.
Meantime, the MOA contains a provision allowing the governor to lease the facility back to NMC for $1 a year should the college come up with a proposed use for the facility.
NMC, then led by board chair Vince Seman, decided to purchase La Fiesta at $7.5 million using a $3.5 million federal grant from the Governor’s Office.
NMC had planned to use the complex for its Pacific Gateway project, which aimed to lure international students to enroll with NMC.
