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NMC seeks investor, buyer for La Fiesta
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Posted on Aug 20 2004
The Northern Marianas College is now accepting proposals for the purchase or utilization of the La Fiesta Shopping Mall, following its huge losses in operating the facility.
In a request for proposal, NMC said it is exploring various options for the use of the mall, for which the college reportedly spends $55,000 in fuel costs alone.
“[NMC] will consider all proposals including, but not limited to, leasing, property management, investment opportunities, and outright purchase [in whole or in part] of the La Fiesta Shopping Center and leasehold interest in the real properties on which such is located,” the college said in a public announcement. “The facility has approximately 100,000 square feet of building space and is situated on 37,834 square meters of land in San Roque.”
NMC chair Kimberly King-Hinds said the board finally decided to pursue the option of sending out an RFP to solicit potential investors that would develop La Fiesta. She did not elaborate.
The college president, Antonio Deleon Guerrero, was not available for comment.
Earlier, however, Deleon Guerrero said NMC’s remaining 19-year leasehold on the La Fiesta mall may be a problem in making long-term plans for the property.
“Is it feasible for the government right now to build a $10-million campus? Is it wise for the CNMI to invest $10 million on a property that has only 19 years remaining in its leasehold? It’s all going to be really temporary,” he noted.
For large businesses, though, the estimated $10-million cost of renovating and furnishing La Fiesta may not be too huge an investment, he added. He cited Filipino tycoon Lucio Tan, who owns a chain of shopping malls in the Philippines and the Micronesia Mall on Guam, as one of the investors being eyed by the college.
NMC purchased the La Fiesta property in Aug. 2003 for $7.5 million, using a $3.5 million federal grant to the Governor’s Office as deposit. The Governor’s Office also provided an additional $250,000 in federal money for the facility’s architectural design.
The remaining amount of $4 million is payable in 20 years at $200,000 annually.
