Mariana House in DC to be leased out—OPA

Due to the unfavorable real estate market, the CNMI government is going to keep the Mariana House—the former Washington Representative’s Office building in Washington, D.C.—as an investment and earn $10,000 to $15,000 in monthly rental once it is leased, according to Public Auditor Michael Pai.

In order to lease the building, Pai said it will have to be repaired and brought to compliance with the Washington, D.C. area building code.

The initial estimate to get the house into rentable shape is $25,000 to $35,000.

Rep. Ray Yumul, chair of the House Ways and Means Committee, yesterday said a minimum of $120,000 in annual income from the building rental is better than selling the asset at a low price at this time.

Pai, in a letter to Senate President Pete P. Reyes and House Speaker Arnold I. Palacios, said a realty company has already been contacted to maintain and lease the building.

The Legislature earlier passed Resolution 16-64 for the Office of the Public Auditor to do a close-out audit of the Washington Representative’s Office.

Pai, OPA legal counsel Nancy Gottfried, and OPA audit manager Ross Zapanta met with Finance Secretary Eloy Inos on Jan. 29 to discuss the assets of the Washington Representative’s Office.

The assets include a 2004 Toyota Sequoia and a 2006 Dodge Caravan; the Marianas House building; and the contents of the Marianas House.

The public auditor said the vehicles are to be sold, but the selling price may have to be reduced to take into account the effect of the sales tax, which the purchaser would be responsible for. No sales taxes were paid on the initial purchase of the vehicles by the Washington Representative’s Office due to its being a government entity.

Pai said much of the contents of the Mariana House have already been disposed of through sale to other government entities such as the government of the Federated States of Micronesia or by donation to 501(c)(3) entities that were willing to pick up the furniture.

“Some items still remain in the house as they are too large to be removed without damaging the structure. The realty company will either have those pieces removed o will leave them for the use of the lessee,” Pai said.

Yumul, in an interview, said Delegate Gregoro “Kilili” Sablan had asked if there are some items of value from the Mariana House that could be transferred to his office for “safekeeping.”

Pai said the Finance secretary is expecting to receive a report detailing the results of the disbursements and receipt of funds related to the disposition of the Washington Representative’s Office assets.