Patience continues to wear thin for JFK High community
By Michele Catahay
Published Jun 22, 2009
KUAM NEWS
Monday morning at the Guam Economic Development Authority a meeting was held between the agency, GPSS and International Bridge Corporation. While the dialogue from that meeting sounds good for the construction of a brand new Home of the Islanders, it doesn't look so good for some senators.
"This delay, I'm not sure why don't have a solution already," said Joanie Tomasiak. "We all now we're constituents. We are voters. We are taxpayers and we understand the game and we need to stop doing that. Why are we suffering?" The JFK social studies teacher and ESL coordinator is tired of the blame game and politics. A year since the Upper Tumon campus was shutdown and enduring a school year of double-session, it's no wonder her patience has worn thin. This morning at GEDA it was announced that negotiations with IBC to build the new JFK are 90% complete.
However, instead of using federal stimulus funding, it now turns out GEDA will use a portion of the recently-received bond revenues to go toward the construction of the new school. IBC president Robert Toelkes said the sooner the contract is signed, the better. Once it is signed, by law, the new school must be constructed in nine months. "Right now what it is that if we do an early august groundbreaking, we're expecting the facility to be completed by may and our hope and intent is to let the 51st anniversary graduating class graduate at the facility - that's our goal," he told KUAM News.
Meanwhile, GEDA administrator Tony Blaz expects for negotiations to be completed by next month. But while all this shows a significant step forward in the construction of a brand new JFK, it could potentially set back the contract discussions with Core Tech International for the interim campus in Tiyan.
Here's why: Bill 1 (4-S), which was passed by lawmakers requires that federal stimulus funds be used for the construction of the new JFK, the measure also sets other provisions in the tentative agreement which has already been signed by Core Tech. With news now that bond money instead will be used to fund the permanent JFK, GEDA administrator Tony Blaz said it's likely the governor will veto the bill.
"I'm sure they want a win-win," said Blaz. "For all of us, we want a new JFK. They're tired of double-sessions. We're all tired of double-sessions. The governor, I guess, gave the proposals and the Legislature gave a different version. I know the governor said he wants to continue with this JFK project. You can't cancel this. We're so close to making the touchdown."
According to Senator Matt Rector, however, using those funds could cost taxpayers a large chunk of change. Instead, GovGuam should use the money from USDOE. He said, "I think that's kind of crazy. I mean we've already the burden our children with $500 million in debt, why would we want to burden them some more if we have the cash right now and we can pay it. It's somebody else's cash and we can build them a good, state of the art school instead of slapping together the first cheap thing we can. That just doesn't make any sense to me."
While we wait to see the outcome of this latest issue to arise surrounding the JFK situation. Students like Eileen Calleja just want to see a resolution to a problem that government leaders knew a year ago. "There are so many decisions that need to be made. How many rallies do we need to do in order for the leaders to listen to us," she said. "We've been out there voicing our concerns. We've been through meetings and so much. I mean, when are they going to listen?"
Core Tech's Josh Tenorio says the government needs to make a decision soon on how it plans to carry out both the interim and permanent JFK campuses. He says if the governor vetoes Bill 1 (4-S), it's likely they'll be back to square one, as they were last Monday.
Showing posts with label GEDCA. Show all posts
Showing posts with label GEDCA. Show all posts
Sunday, June 21, 2009
Tuesday, June 09, 2009
Bond Sale Closed by June 17
Bond sale closed by June 17
Tuesday, 09 June 2009
by Therese Hart
Marianas Variety News Staff
THE sale of government of Guam bonds will be finalized by June 17 and the money will be in the government account the next day, according to Tony Blaz, administrator of the Guam Economic Development Authority, who just returned from New York after successfully marketing the landfill and general obligation bonds.
“I’m happy that the landfill bond sold, but I’m also happy that our manamko will finally receive their COLA money. They’ve waited so long for this and when they pass on without seeing that money, it’s a sad day. We have to remember that they built this government through their hard work and dedication,” said Blaz.
The government of Guam successfully sold $473.5 million of triple tax-exempt bonds in the municipal market last week in New York—historic bond sales—which marked two of the first large high-yield transactions since the global financial fallout of the municipal market in fall of last year.
The two bond issues included $270 million of general obligation bonds, rated “B+,” and $202.4 million limited obligation Section 30-backed bonds, rated “BBB-.”
The successful issuance of the $270 million debt service bonds will pay for overdue tax refunds, a court-ordered cost of living allowance and other government debts.
The $202.4 million Section 30 bonds will pay for the construction of the new landfill as well as the closure of the Ordot dump.
“These people did their part. I know many people have said, hey, we don’t need to take care of them. But these people helped build the government of Guam and we have to be grateful,” Blaz said, referring to the government retirees who are owed their COLA.
Blaz acknowledged that it was a long standing obligation that should have been addressed decades ago. “But we didn’t. And today, we delivered for the people of Guam. This governor made it happen,” he said.
Overwhelming investor interest led to adjusted bond yields downward on both transactions, saving over $100 million in debt service on the general obligation bonds and over $56 million in debt service on the Section 30 bonds, compared to estimates a few weeks, according to a Guam Economic Development Authority press release.
The final yields ranged from 6.20 percent to 7.18 percent for the general obligation bonds and 3.95 percent to 6 percent for the Section 30 bonds.
“This was well below the interest rates that the government anticipated even a few weeks ago, and below the interest rate caps set by the authorizing legislation,” said Blaz.
Tuesday, 09 June 2009
by Therese Hart
Marianas Variety News Staff
THE sale of government of Guam bonds will be finalized by June 17 and the money will be in the government account the next day, according to Tony Blaz, administrator of the Guam Economic Development Authority, who just returned from New York after successfully marketing the landfill and general obligation bonds.
“I’m happy that the landfill bond sold, but I’m also happy that our manamko will finally receive their COLA money. They’ve waited so long for this and when they pass on without seeing that money, it’s a sad day. We have to remember that they built this government through their hard work and dedication,” said Blaz.
The government of Guam successfully sold $473.5 million of triple tax-exempt bonds in the municipal market last week in New York—historic bond sales—which marked two of the first large high-yield transactions since the global financial fallout of the municipal market in fall of last year.
The two bond issues included $270 million of general obligation bonds, rated “B+,” and $202.4 million limited obligation Section 30-backed bonds, rated “BBB-.”
The successful issuance of the $270 million debt service bonds will pay for overdue tax refunds, a court-ordered cost of living allowance and other government debts.
The $202.4 million Section 30 bonds will pay for the construction of the new landfill as well as the closure of the Ordot dump.
“These people did their part. I know many people have said, hey, we don’t need to take care of them. But these people helped build the government of Guam and we have to be grateful,” Blaz said, referring to the government retirees who are owed their COLA.
Blaz acknowledged that it was a long standing obligation that should have been addressed decades ago. “But we didn’t. And today, we delivered for the people of Guam. This governor made it happen,” he said.
Overwhelming investor interest led to adjusted bond yields downward on both transactions, saving over $100 million in debt service on the general obligation bonds and over $56 million in debt service on the Section 30 bonds, compared to estimates a few weeks, according to a Guam Economic Development Authority press release.
The final yields ranged from 6.20 percent to 7.18 percent for the general obligation bonds and 3.95 percent to 6 percent for the Section 30 bonds.
“This was well below the interest rates that the government anticipated even a few weeks ago, and below the interest rate caps set by the authorizing legislation,” said Blaz.
Wednesday, January 14, 2009
DoD May Have to Compete With Developers
DoD may have to compete with developers
Thursday, 15 January 2009
By Mar-Vic Cagurangan
Variety News Staff
THE Department of Defense might have to compete with private developers and the Guam International Airport Authority for the acquisition of Yigo lands, which are being considered by the military as a potential site for a new firing range.
Rolenda Faasuamalie, public information officer for GIAA, said the airport authority is eyeing a portion of the target property as the site of the $16 million municipal airport project to be funded by the Federal Aviation Authority.
GIAA was among the three bidders that responded last year to the Guam Economic Development and Commerce Authority's solicitation for lease and development of the 395-acre property owned by the Chamorro Land Trust Commission and Ancestral Lands Commission.
"We received a notification that we ranked third, but we're not aware of the current status of the bidding selection," Faasuamalie said.
She added that FAA-funded studies have already identified the ancestral lands on Route 15 as the most ideal site for the municipal airport project, which is part of the government's aviation enhancement initiative.
Faasuamalie said the proposed municipal airport will be designated for private small aircrafts so that don't they mix with commercial planes as they do now at the existing airport.
"We're being optimistic about the future, and trying to meet our space and capacity," she said. "It would require that the government give us authority to use the land."
Faasuamalie said GIAA has not identified an alternative site for the municipal airport.
GEDCA
Mike Cruz, manager of GEDCA's Real Property Division, said the selection committee has evaluated the bidding proposals and ranked the bidders, accordingly, but no final decision has been made.
"We have to go into negotiation with the first ranked bidder, but we haven't started yet. We have to get together with the negotiating team which will include the Ancestral Lands Commission," Cruz said.
He confirmed that GIAA was among the bidders but declined to identify the two other bidders.
"We will negotiate with the No. 1 bidder first, and if it didn't work out, we would proceed with the ones next in line," Cruz said.
He said the developer that will eventually be awarded the lease would be allowed to use the property however it wants.
"We don't limit how private developers want to use the property. We believe the private sector knows the market," Cruz said.
The Land Trust property and the roughly 250 acres of land being occupied by the Guam International Raceway are currently being surveyed by military contractors.
The Joint Guam Program Office has confirmed that DoD is considering those properties for the construction of non-live fire training facilities.
"We have authorized (the military) to access the property and take a look at these areas. They told us that they're looking at these properties as part of the (environmental impact assessment)," Cruz said. "But they never said they will acquire or use it."
Thursday, 15 January 2009
By Mar-Vic Cagurangan
Variety News Staff
THE Department of Defense might have to compete with private developers and the Guam International Airport Authority for the acquisition of Yigo lands, which are being considered by the military as a potential site for a new firing range.
Rolenda Faasuamalie, public information officer for GIAA, said the airport authority is eyeing a portion of the target property as the site of the $16 million municipal airport project to be funded by the Federal Aviation Authority.
GIAA was among the three bidders that responded last year to the Guam Economic Development and Commerce Authority's solicitation for lease and development of the 395-acre property owned by the Chamorro Land Trust Commission and Ancestral Lands Commission.
"We received a notification that we ranked third, but we're not aware of the current status of the bidding selection," Faasuamalie said.
She added that FAA-funded studies have already identified the ancestral lands on Route 15 as the most ideal site for the municipal airport project, which is part of the government's aviation enhancement initiative.
Faasuamalie said the proposed municipal airport will be designated for private small aircrafts so that don't they mix with commercial planes as they do now at the existing airport.
"We're being optimistic about the future, and trying to meet our space and capacity," she said. "It would require that the government give us authority to use the land."
Faasuamalie said GIAA has not identified an alternative site for the municipal airport.
GEDCA
Mike Cruz, manager of GEDCA's Real Property Division, said the selection committee has evaluated the bidding proposals and ranked the bidders, accordingly, but no final decision has been made.
"We have to go into negotiation with the first ranked bidder, but we haven't started yet. We have to get together with the negotiating team which will include the Ancestral Lands Commission," Cruz said.
He confirmed that GIAA was among the bidders but declined to identify the two other bidders.
"We will negotiate with the No. 1 bidder first, and if it didn't work out, we would proceed with the ones next in line," Cruz said.
He said the developer that will eventually be awarded the lease would be allowed to use the property however it wants.
"We don't limit how private developers want to use the property. We believe the private sector knows the market," Cruz said.
The Land Trust property and the roughly 250 acres of land being occupied by the Guam International Raceway are currently being surveyed by military contractors.
The Joint Guam Program Office has confirmed that DoD is considering those properties for the construction of non-live fire training facilities.
"We have authorized (the military) to access the property and take a look at these areas. They told us that they're looking at these properties as part of the (environmental impact assessment)," Cruz said. "But they never said they will acquire or use it."
Tuesday, December 16, 2008
DOD Mystery Project in Yigo
DoD’s ‘mystery’ project puzzles Guam officials
17 December 2008
By Beau Hodai
Marianas Variety News Staff
THE Department of Defense is doing environmental assessments on a non-military property in Yigo—the purpose of which remains unclear to Guam officials and to the land’s current occupants.
George Bamba, the governor’s chief of staff, said yesterday the governor is unsure if the military may be looking to expand its operations outside of existing military properties.
“It’s always been the governor’s position, reinforced by his meeting with the Joint Guam Program Office and the Navy that any developments will be within the military’s existing footprint,” said Bamba. “We were told from the beginning that they would stay within their footprint. We have no further information to the contrary.”
Military contractors are currently surveying roughly 250 acres of land being occupied by the Guam International Raceway and another 400 acres of property to the south belonging to the Ancestral Lands Commission.
Raceway general manager Henry Simpson said recent reports about the relocation of military firing ranges have raised concerns on the future of the racetrack and the ancestral lands property.
Sen. Judi Guthertz said that under the revised Draft Master Plan, the firing ranges would face to the northeast, rather than to the west, and would be located near the southern portion of Andersen Air Force Base.
Guthertz raised concerns about such plan in a letter to Major General David Bice (retired), executive director of the Joint Guam Program Office.
Simpson noted that the racetrack location and the adjacent land currently being surveyed seem to fit the bill for the proposed artillery range.
Clueless
“We’re all sitting here speculating as to why and what they’re going to build and why and what they may need,” said Simpson. “They should be open to people so we can come up with a better idea. Even if they put it where we are, they are going to affect some usage of the water on the other side.”
Simpson said he would appreciate more input from the military as to what their plans are, as the Guam Racing Federation, the not-for-profit group that runs the racetrack, has invested 15 years in the track.
“I think they’re just going to sit on it and not tell us much,” said Simpson. “I don’t think anyone involved in this is antimilitary in any way. But we are people who will be highly affected by what they do and more affected than most by what they do if they take that piece of property away from us. So, it would be nice to know now, rather than five years from now, what their intentions are.”
Captain Neil Ruggiero, spokesman for JGPO, confirmed that DOD has been surveying land in the vicinity of the raceway, but could not comment on whether the military planned to use it, or what the military might use it for.
“We’re just looking at its suitability right now,” said Ruggiero. “I mean, we can’t determine anything until we determine the suitability of the land.”
“It remains our intent to maximize the use of DOD property for the military realignment. However, through the NEPA (National Environmental Policy Act) and master planning processes, as well as through discussions with the Government of Guam, we have found that certain activities do not fit on DOD properties without adversely affecting the citizens of Guam,” Ruggiero added in a written statement.
“Accordingly, we have been in consultation with GovGuam officials on potential leasing of GovGuam lands. There are surveys currently taking place at various points on the island to determine the suitability of leasing lands for DOD use. The results of the surveys will not be known until sometime in the first quarter of 2009.”
Environmental assessment
Mike Cruz, manager of the Real Property Division of the Guam Economic Development and Commerce Authority, confirmed that the Navy has been assessing the Ancestral Lands Commission property adjacent to the raceway, but said the Navy has not indicated if they plan on using the land.
“We did give permission to the Navy to conduct environmental studies as well as natural resources studies as part of their Environmental Impact Statement for the relocation of the Marines,” Cruz said.
“They’ve asked our permission to take a look at the characteristics of this property in order for them to include it in the Environmental Impact Statement. Federal law requires that they take a look at all possible alternatives and they’ve indicated to us that that’s what they intend to do, to look at this as a possible alternative for the relocation of the Marines,” he added.
Lorelei Crisostomo, director of the Guam Environmental Protection Agency, said the agency is not sure what the findings or implications of the EIS will be at the time of its expected release in January. However, she said the JGPO Draft Master Plan only addressed properties already under military control.
Oscar Calvo, chairman for the Chamorro Land Trust Commission, said that the commission has not been approached by the military concerning the use of CLTC lands, but confirmed that the military has requested permission to survey the lands.
“They are looking, but nothing concrete. It would be premature for me to say it’s true or not true because they haven’t really come forward to the Chamorro Land Trust,” he said. “We have authorized them to go up there and to survey and that’s about it. Other than that, we don’t have anything concrete on that issue.”
Calvo said he has been involved with several conversations with the governor regarding potential military requests for more land.
“First of all, we don’t really want to give them any more land,” he said. “I’ve posed this to the governor—why don’t they use their own land, like Andersen or there’s a lot of military compound here that is still not being utilized.”
17 December 2008
By Beau Hodai
Marianas Variety News Staff
THE Department of Defense is doing environmental assessments on a non-military property in Yigo—the purpose of which remains unclear to Guam officials and to the land’s current occupants.
George Bamba, the governor’s chief of staff, said yesterday the governor is unsure if the military may be looking to expand its operations outside of existing military properties.
“It’s always been the governor’s position, reinforced by his meeting with the Joint Guam Program Office and the Navy that any developments will be within the military’s existing footprint,” said Bamba. “We were told from the beginning that they would stay within their footprint. We have no further information to the contrary.”
Military contractors are currently surveying roughly 250 acres of land being occupied by the Guam International Raceway and another 400 acres of property to the south belonging to the Ancestral Lands Commission.
Raceway general manager Henry Simpson said recent reports about the relocation of military firing ranges have raised concerns on the future of the racetrack and the ancestral lands property.
Sen. Judi Guthertz said that under the revised Draft Master Plan, the firing ranges would face to the northeast, rather than to the west, and would be located near the southern portion of Andersen Air Force Base.
Guthertz raised concerns about such plan in a letter to Major General David Bice (retired), executive director of the Joint Guam Program Office.
Simpson noted that the racetrack location and the adjacent land currently being surveyed seem to fit the bill for the proposed artillery range.
Clueless
“We’re all sitting here speculating as to why and what they’re going to build and why and what they may need,” said Simpson. “They should be open to people so we can come up with a better idea. Even if they put it where we are, they are going to affect some usage of the water on the other side.”
Simpson said he would appreciate more input from the military as to what their plans are, as the Guam Racing Federation, the not-for-profit group that runs the racetrack, has invested 15 years in the track.
“I think they’re just going to sit on it and not tell us much,” said Simpson. “I don’t think anyone involved in this is antimilitary in any way. But we are people who will be highly affected by what they do and more affected than most by what they do if they take that piece of property away from us. So, it would be nice to know now, rather than five years from now, what their intentions are.”
Captain Neil Ruggiero, spokesman for JGPO, confirmed that DOD has been surveying land in the vicinity of the raceway, but could not comment on whether the military planned to use it, or what the military might use it for.
“We’re just looking at its suitability right now,” said Ruggiero. “I mean, we can’t determine anything until we determine the suitability of the land.”
“It remains our intent to maximize the use of DOD property for the military realignment. However, through the NEPA (National Environmental Policy Act) and master planning processes, as well as through discussions with the Government of Guam, we have found that certain activities do not fit on DOD properties without adversely affecting the citizens of Guam,” Ruggiero added in a written statement.
“Accordingly, we have been in consultation with GovGuam officials on potential leasing of GovGuam lands. There are surveys currently taking place at various points on the island to determine the suitability of leasing lands for DOD use. The results of the surveys will not be known until sometime in the first quarter of 2009.”
Environmental assessment
Mike Cruz, manager of the Real Property Division of the Guam Economic Development and Commerce Authority, confirmed that the Navy has been assessing the Ancestral Lands Commission property adjacent to the raceway, but said the Navy has not indicated if they plan on using the land.
“We did give permission to the Navy to conduct environmental studies as well as natural resources studies as part of their Environmental Impact Statement for the relocation of the Marines,” Cruz said.
“They’ve asked our permission to take a look at the characteristics of this property in order for them to include it in the Environmental Impact Statement. Federal law requires that they take a look at all possible alternatives and they’ve indicated to us that that’s what they intend to do, to look at this as a possible alternative for the relocation of the Marines,” he added.
Lorelei Crisostomo, director of the Guam Environmental Protection Agency, said the agency is not sure what the findings or implications of the EIS will be at the time of its expected release in January. However, she said the JGPO Draft Master Plan only addressed properties already under military control.
Oscar Calvo, chairman for the Chamorro Land Trust Commission, said that the commission has not been approached by the military concerning the use of CLTC lands, but confirmed that the military has requested permission to survey the lands.
“They are looking, but nothing concrete. It would be premature for me to say it’s true or not true because they haven’t really come forward to the Chamorro Land Trust,” he said. “We have authorized them to go up there and to survey and that’s about it. Other than that, we don’t have anything concrete on that issue.”
Calvo said he has been involved with several conversations with the governor regarding potential military requests for more land.
“First of all, we don’t really want to give them any more land,” he said. “I’ve posed this to the governor—why don’t they use their own land, like Andersen or there’s a lot of military compound here that is still not being utilized.”
Monday, December 15, 2008
Governor Optimistic About $20 Million Landfill Loan
Governor confident: Camacho upbeat on $20M landfill loan
By Dionesis Tamondong
Pacific Daily News
December 17, 2008
One local bank official said his bank is just not interested in lending the government $20 million for landfill construction. Another lender said it would consider the proposal if the repayment sources were more concrete.
With less than a week before the federal deadline for responses, the Camacho administration is sure some lending institutions will submit proposals to finance the Ordot dump closure and landfill construction projects.
"We remain confident that we will be able to secure the financing," said George Bamba, Gov. Felix Camacho's chief of staff. The government of Guam must deposit $20 million by Jan. 5, or some officials could face legal action from the federal government.
The Guam Economic Development and Commerce Authority has issued a request for proposals for financiers to lend GovGuam the money for the start-up projects.
BankPacific President Phil Flores said his bank won't respond to the financing request. "We're not interested. We're just not going to bid on this one."
While Flores didn't provide a specific reason for not responding to GovGuam's proposal, he said there's too much confusion over the dump situation.
"Is the Legislature wanting to build in Layon or to give the contract to (Guam Resource Recovery Partners)?" Flores asked. "So if you're lending money for a new landfill, there's always the concern that it's not going to be built."
Several lawmakers disagree with the local government's selection of Dandan, Inarajan, as the landfill site, arguing it is a potential freshwater source and is too remote for efficient use as a landfill. Senators passed a measure last month pushing for development of a privately operated landfill in the Guatali area of Piti and Santa Rita, on land being leased by GRRP, saying it is friendlier to the environment and less costly than floating bonds to develop the Inarajan site.
Pete Sgro Jr., co-counsel to Barclay's Capital, said his firm would be interested only if the repayment terms were solidified with Section 30 funds as collateral for the loan. Barclay's Capital is a division of Barclay's Bank, which has offices worldwide.
"We are seriously considering submitting a response, and if we do so, however, the response will contain terms that would include not continuing with a subordination of the Section 30 money," Sgro said. "Otherwise there is no value in the collateral."
Sgro said lawmakers made "damaging amendments" to the governor's original short-term borrowing bill.
The administration had pledged Section 30 money -- taxes paid by federal and military employees on Guam and remitted to GovGuam --to pay back the $20 million.
But lawmakers instead required tipping fees be used as the main repayment source, and a variety of funding sources -- including compact-impact money, Section 30 money and the General Fund -- as additional security, Sen. Ben Pangelinan said.
By doing so, Section 30 funds could continue to be used for other obligations, such as the overdue tax refunds and COLA payments.
"These payments are also ordered by the court and on par with the landfill issue," Pangelinan said.
Pangelinan said the amendments were made in consultation with the administration's fiscal policy team after lawmakers realized there wasn't enough support to pass the governor's original bill.
Sgro said lawmakers should go back and approve the original version of the governor's bill, which is in line with the intent of the federal receiver and the District Court of Guam.
"How can anyone ignore the consistent position taken by (Chief Judge Frances Tydingco-) Gatewood and create an amendment that will not accomplish the necessary financing because of the vagueness and lack of value of the collateral created by an amendment?" Sgro asked.
By Dionesis Tamondong
Pacific Daily News
December 17, 2008
One local bank official said his bank is just not interested in lending the government $20 million for landfill construction. Another lender said it would consider the proposal if the repayment sources were more concrete.
With less than a week before the federal deadline for responses, the Camacho administration is sure some lending institutions will submit proposals to finance the Ordot dump closure and landfill construction projects.
"We remain confident that we will be able to secure the financing," said George Bamba, Gov. Felix Camacho's chief of staff. The government of Guam must deposit $20 million by Jan. 5, or some officials could face legal action from the federal government.
The Guam Economic Development and Commerce Authority has issued a request for proposals for financiers to lend GovGuam the money for the start-up projects.
BankPacific President Phil Flores said his bank won't respond to the financing request. "We're not interested. We're just not going to bid on this one."
While Flores didn't provide a specific reason for not responding to GovGuam's proposal, he said there's too much confusion over the dump situation.
"Is the Legislature wanting to build in Layon or to give the contract to (Guam Resource Recovery Partners)?" Flores asked. "So if you're lending money for a new landfill, there's always the concern that it's not going to be built."
Several lawmakers disagree with the local government's selection of Dandan, Inarajan, as the landfill site, arguing it is a potential freshwater source and is too remote for efficient use as a landfill. Senators passed a measure last month pushing for development of a privately operated landfill in the Guatali area of Piti and Santa Rita, on land being leased by GRRP, saying it is friendlier to the environment and less costly than floating bonds to develop the Inarajan site.
Pete Sgro Jr., co-counsel to Barclay's Capital, said his firm would be interested only if the repayment terms were solidified with Section 30 funds as collateral for the loan. Barclay's Capital is a division of Barclay's Bank, which has offices worldwide.
"We are seriously considering submitting a response, and if we do so, however, the response will contain terms that would include not continuing with a subordination of the Section 30 money," Sgro said. "Otherwise there is no value in the collateral."
Sgro said lawmakers made "damaging amendments" to the governor's original short-term borrowing bill.
The administration had pledged Section 30 money -- taxes paid by federal and military employees on Guam and remitted to GovGuam --to pay back the $20 million.
But lawmakers instead required tipping fees be used as the main repayment source, and a variety of funding sources -- including compact-impact money, Section 30 money and the General Fund -- as additional security, Sen. Ben Pangelinan said.
By doing so, Section 30 funds could continue to be used for other obligations, such as the overdue tax refunds and COLA payments.
"These payments are also ordered by the court and on par with the landfill issue," Pangelinan said.
Pangelinan said the amendments were made in consultation with the administration's fiscal policy team after lawmakers realized there wasn't enough support to pass the governor's original bill.
Sgro said lawmakers should go back and approve the original version of the governor's bill, which is in line with the intent of the federal receiver and the District Court of Guam.
"How can anyone ignore the consistent position taken by (Chief Judge Frances Tydingco-) Gatewood and create an amendment that will not accomplish the necessary financing because of the vagueness and lack of value of the collateral created by an amendment?" Sgro asked.
Sunday, November 09, 2008
GovGuam Bonds Upgraded to B +
GovGuam bond upgraded to B+
By Sabrina Salas Matanane
Published Oct 29, 2008
KUAM NEWS
Ratings authority Standard & Poor's has upgraded the Government of Guam's General Obligation bonds to "B+" from "B". The upgrade follows a recent trip by Guam Economic Development and Commerce Administrator Tony Blaz, governor's chief of staff George Bamba, and Bureau of Budget Management & Research director Bertha Duenas, who met with the company two weeks ago.
During that meeting the governor's financial team highlighted "the projected growth of Guam's economy including the imminent military buildup and tourism diversification efforts with regards to the China Visa Waiver Program," stated Blaz. According to a report issued by S&P, "The upgrade is based on the general government's improved financial performance, which is the direct result of greater political consensus to enhance revenues and control expenditure growth."
The report went on to state that it was also based on the general government more fully addressing the unfunded long-term liabilities on Guam's balance sheet. "This is excellent news, which speaks to this Administration's serious commitment to stronger finances," Governor Felix Camacho said. "When I came to office in 2003, I promised to improve the government's finances and take us up the road to fiscal recovery. I'm proud we're accomplishing this for the benefit of the generations that come after ours. "
"There is a long road ahead and we're going to keep working to eliminate the deficit, pay our people what they are owed and strengthen the government's financial position further," he added.
By Sabrina Salas Matanane
Published Oct 29, 2008
KUAM NEWS
Ratings authority Standard & Poor's has upgraded the Government of Guam's General Obligation bonds to "B+" from "B". The upgrade follows a recent trip by Guam Economic Development and Commerce Administrator Tony Blaz, governor's chief of staff George Bamba, and Bureau of Budget Management & Research director Bertha Duenas, who met with the company two weeks ago.
During that meeting the governor's financial team highlighted "the projected growth of Guam's economy including the imminent military buildup and tourism diversification efforts with regards to the China Visa Waiver Program," stated Blaz. According to a report issued by S&P, "The upgrade is based on the general government's improved financial performance, which is the direct result of greater political consensus to enhance revenues and control expenditure growth."
The report went on to state that it was also based on the general government more fully addressing the unfunded long-term liabilities on Guam's balance sheet. "This is excellent news, which speaks to this Administration's serious commitment to stronger finances," Governor Felix Camacho said. "When I came to office in 2003, I promised to improve the government's finances and take us up the road to fiscal recovery. I'm proud we're accomplishing this for the benefit of the generations that come after ours. "
"There is a long road ahead and we're going to keep working to eliminate the deficit, pay our people what they are owed and strengthen the government's financial position further," he added.
Subscribe to:
Posts (Atom)