VIDEO: Governor Signs Revised Tiyan Purchase Agreement

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Guam – Governor Eddie Calvo this afternoon signed a revised Tiyan purchase agreement which commits GovGuam to buying only the existing structures, and the land they sit on for use by both the Guahan Charter School, and for a new central High School.

The previous lease agreement would have included the cost of building a new DOE Central Office and warehouses. That is no longer in the revised lease.

The revised agreement has a purchase price of just $57-million dollars with a 7% interest rate through 2024.  That is $41 – million dollars less than the previous price of $98 million which would have included construction of the office space and warehouse. 

READ the Revised Tiyan Purchase Agreement HERE

The Governor explained that the revised cost of $57-million is only the price for purchasing the current structures if it were all to be paid off in its entirety in 2014.  He acknowledged that the full amount won’t be paid next year, therefore the total price paid by GovGuam will be greater, depending upon when the entire amount, plus interest is paid off.  The purchase prices must be fully paid off by 2024.

Core Tech is receiving tax credits only, not cash.

GEDA Administrator Henry Taitano explained that the current lease payments will become lease-to-own payments and they will continue at the current rate until the full amount has been paid off.

The Governor said that the lease-to-purchase agreement and the final costs will be released to the media later today.

The Governor said his administration has been “transparent” throughout the entire lease-to-purchase process and that he has been following the law. He said that it was the legislature, in Public Law 31-229, that approved the purchase as well as the construction of a new central office and warehouse on the Tiyan properties in question. He said he was “not quit following the law” by signing the revised lease because it does not include the construction of the new office and warehouse space that is in the law. However he said he was going to leave it to the Legislature to come back to him publicly and insist on the inclusion of the new office space, if that is what they really want.

The Governor was also critical of the media and talk show hosts for reporting rumor and innuendo and not the facts.