NMC explores financing options for campus reconstruction

Northern Marianas College president Dr. Sharon Hart hopes to move forward with campus reconstruction, exploring facility-financing options through the U.S. Department of Agriculture’s Rural Development.

“With our college now in strong standing with our accreditation, it is time that we move forward and start addressing these major facilities challenges that we have, especially the need for new and improved classrooms and areas for student services,” she told Saipan Tribune in an interview.

The college is primarily looking at options through USDA’s Rural Development, she said, talking with officials based out of Guam and Hawaii recently.

The college met with USDA area director Joseph Diego Tuesday morning. They looked at USDA’s “Rural Economic Development Loan,” for example.

Hart highlighted the loan’s “excellent interest rates” that are around 3.75 percent, according to her, and added that “there really is no base amount” for the loans.

But their availability would depend on ensuring in the long run that a repayment source is identified for these loans that usually max out at around 35 to 40 years, according to her.

She pointed to Guam where legislation was passed to support USDA funding “to help guarantee that payment availability for the future.”

NMC already meets the basic criteria for the loan, making them eligible to apply. But “the issue would be more of, ‘Can we repay? Can we guarantee a source for our payment?” according to Hart.

She said this is just one opportunity they could look at. They could also leverage a combination of sources, working with U.S. Department of Education, leveraging with Housing and Urban Development, and other federal agencies.

“The important thing for us is coming up with a plan and sitting down with our local leaders—especially the governor and the Legislature—to really get into those discussions about the future campus of NMC.”

She said improving the campus is “also about competition” for international students. “We not only draw students from the CNMI, we draw students from abroad.”

She described the college facilities as “outdated,” saying that they “bursting at the seams in many areas,” as classroom sizes for many of their classes are “not appropriate.”

“It’s not cost effective with an old campus like that. You are putting up so much money into repairs and remodeling all the time—that you are really better off looking at something more appropriate for the time.”

The college has not undergone major reconstruction since it was built on or about 1955 as a single story, semi-concrete hospital.

Waiting in the wings is the first stage of a Beca-designed campus reconstruction, estimated to cost $27.5 million. The Board of Regents adopted Beca’s master plan in 2011.

According to its capital cost plan in 2010, it would be implemented in 10 stages, with a total project cost of $60,730,000.

If completed, the first phase would usher in a new education building, new library, and new student center.

New classrooms, vocation studies and science buildings, as well as new car parking and other building refurbishments would follow in the latter 10 stages, among other things.