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Back Local News Calvo signs Tiyan purchase

Calvo signs Tiyan purchase

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GOV. Eddie Calvo signed a purchase agreement yesterday, exercising the government of Guam’s option to buy the Tiyan campus occupied by Untalan Middle School and the Guahan Academy Charter School.

The premises being purchased are listed in the lease agreement between Core Tech International Corp. and the government. Calvo approved the agreement amid public questioning about the cost-effectiveness of the purchase.

According to a statement, Calvo and Core Tech agreed not to build three of the buildings identified in the agreement. A proposed gymnasium, a second warehouse, and an office from which the Guam Department of Education could operate were the buildings Calvo and Core Tech agreed not to build.

The omission of the construction of these buildings brought the originally calculated $79 million – as stated in the purchase agreement – to $56 million.

Troy Torres, the governor’s director of communications, said the agreement between Calvo and Core Tech is outlined in a document sent by Core Tech yesterday morning. Torres said the document has not yet been released, as it is pending approval by the Office of the Attorney General. “It basically says that the decision to construct new facilities can be terminated over the next six months,” Torres said.

Torres said the payment for the new facilities will not start unless the new buildings are occupied.

With the government not pursuing the construction of the three buildings, the $56 million will be used to purchase the space Untalan Middle School occupies as well as an office building, the Guahan Academy space and a warehouse.

Tax credits

The payment would be made through tax credits as authorized by the Legislature in Public Laws 30-37 and 31-76.

Torres said the first payment is due Feb. 1, 2014 and will cost $8 million in tax credits. The payment is about $2 million more than what the purchase agreement specifies because of collateral equipment costs. The collateral equipment costs were denoted in the second and third amendments to the initial lease agreement.

Thereafter, Torres said payment is due every Feb. 1, and the amount is dependent on the principal amount left to pay, with the interest rate at 7.193 percent, indicated in the lease agreement. The payment plan is similar to that of a mortgage payment, Torres said.

If the construction of the three new facilities is not built, then the amount of $56 million is to be paid until the end of the purchase agreement, which, the agreement states, is Dec. 31, 2024.

With the approval of the purchase agreement, the governor hopes to alleviate the issue of over-crowding at George Washington High School with the opening of a central high school at the Tiyan campus. Untalan Middle School is using the site while its campus is being renovated.

The governor expects the central high school to open in August.

During a press conference yesterday at Adelup, Torres expressed his frustrations that there had been allegations against the transparency of the Office of the Governor. In an effort to quell what Torres called “falsehoods,” he offered printed copies of all relevant documents surrounding the lease of the Tiyan property. Torres said the documents had been accessible by the public since 2009.

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