NMC stumbles with the La Fiesta fiasco

Even from the beginning, the year 2004 held no great promises for the Pacific Gateway Project, for which the Northern Marianas College purchased the $7.5 million La Fiesta Mall in San Roque.

On Jan. 1, 2004, the college took over the facility amid wide criticism relating to a wide range of issues—from the governor’s role in the acquisition of the property to the facility’s high maintenance costs to NMC’s ability to recruit foreign students.

Soon enough, NMC Board of Regents chairwoman Kimberlyn King-Hinds cried that contrary to the college leadership’s expectations, La Fiesta was bleeding NMC dry. NMC reported that it was spending $55,000 a month for the power generation plant’s fuel alone.

With the college facing a huge budget shortfall, Kenneth Wright quit as NMC president on Feb. 20 over a loss of confidence by the Board of Regents.

Wright’s resignation came a month after the Western Association of Schools and Colleges-Accrediting Commission for Community and Junior Colleges placed NMC’s accreditation on warning status due to the college’s failure to correct finance-related problems and inability to comply with certain accreditation standards.

By April 30, the NMC regents voted unanimously to put on hold the Pacific Gateway project and shut down the operations of La Fiesta for lack of funding.

Yet, the ACCJC retained NMC’s accreditation on warning status in June, citing concerns over NMC’s lack of resources to maintain two campuses.

WASC’s Senior College Commission followed suit in July, issuing a similar warning that put the college’s four-year elementary education program—its only baccalaureate program—at risk.

Amid all the problems stemming from La Fiesta, Gov. Juan N. Babauta did not waver in his support for the Pacific Gateway Project or NMC’s operation of the La Fiesta complex.

Babauta made various efforts to rescue the La Fiesta project, offering in May to reimburse the college for operational costs spent on the facility from December 2003 to February 2004, amounting to some $150,000.

The Governor’s Office also offset NMC’s monthly expenses at La Fiesta from March to September, when the fiscal year ended.

The start of fiscal year 2005, however, posed a new problem for the college, prompting NMC officials to ask the Legislature for additional funding for the operation of the mall. The Legislature disapproved, leaving NMC without money to run the facility beginning Oct. 1.

Another problem was the first $200,000 leasehold payment due on Oct. 29 to the mall’s original sellers— Hotel Nikko Saipan and Coco’s Lagoon Development Corp.

In an effort to rid NMC of the La Fiesta burden, the College Council, Faculty Senate, Staff Senate, and the Associated Students of NMC submitted a proposal on Sept. 11 recommending that the Board of Regents transfer ownership of the property to the CNMI government and that the Executive Branch assume management of the facility.

The Board of Regents adopted the recommendation and the memorandum of agreement was executed between NMC and Babauta on Sept. 15.

Hotel Nikko and Coco’s Lagoon have consented to the agreement in November. To date, the final agreement has yet to be signed.

Meantime, NMC’s accreditation remains hanging in balance after it missed the Dec. 8 deadline set by the accrediting commission for information regarding the finalization of La Fiesta’s transfer to the CNMI government.

The accrediting commission is set to decide on NMC’s status in January 2005.