VIDEO: Ysrael Calls Administration’s Proposal to Buy Tiyan Lots for New High School a “Financial Boondoggle”

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Guam – Developer Al Ysrael has released a preliminary sketch of a proposed new Central High School which he says can be built for less than $30-million dollars.

He maintains that it would be better to continue to rent the present Tiyan facility for the next two years “to allow the construction of a more permanent, newer, facility” rather than rush into the Administration’s proposal to buy the facility from Core Tech which he calls a  “financial boondoggle.”

 In an open  letter to Governor Calvo and Speaker Won Pat, [read letter in full below] Ysrael says the facility would have 84 classrooms, plus a central Administration Building,  that will include a library, Nurses station, security, a Gym building , and a cafeteria building.

He says the entire facility can be built, “under private supervision”, for under $30-million dollars, with an interest rate of about about 6% for the private investor who would build it, which he says would be less than the rate proposed in the Governor’s plan to purchase the Core-Tech property in Tiyan.

The $30-million does not include the cost of the land, but Ysrael says the new school could be built on GovGuam land at no additional cost.

Ysrael says “a considerable amount of interest has surfaced from local individuals and financial institutions” and there is “a desire and ability to do the financing locally.”

The developer calls the proposed $43-million dollar purchase price in the Governor’s plan “exorbitant, considering that there is only one interested buyer = GOVGUAM.”

Ysreal says that without GovGuam’s interest in the property, “you would have no buyer, or interested entity,  and the value goes down to nearly zero. “ And he think that “there are too many consultant and advisers on this project,  that  might be the contributing factor to the high selling price.”

Ysrael argues that “proper planning …  will mean better, longer lasting facilities than that presently under consideration.”

 

   

READ the release from Al Ysrael below:

December 24, 2013

Dear Governor Calvo and Madam Speaker:

As promised, attached  is a preliminary sketch of our proposal for the new Central high School.  It will have 84 classrooms, plus a central Administration Building,  that will include a library, Nurses station, security, etc., a Gym building , and a cafeteria building.

This entire facility can be built for under $30,000,000, under private supervision.  The rate of return or interest will come to about 6%.  This financial consideration is  considerably lower than that being presently proposed.  The proposed purchase price of $43,000,000. is exorbitant, considering that there is only one interested buyer = GOVGUAM.  Take GovGuam out of the picture and you would have no buyer, or interested entity,  and the value goes down to nearly zero.  There are too many consultant and advisers on this project,  that  might be the contributing factor to the high selling price.  See the historical note below.

By proper planning, it will mean better, longer lasting facilities than that presently under consideration. Rather than committing the GovGuam to a final financial boondoggle, I would respectfully suggest that the present building be rented for a period of two years, to allow the construction of a more permanent, newer, facility  Some students and teachers will be inconvenienced  initially, but they will end up with a better and longer lasting facility.

A considerable amount of interest has surfaced from local individuals and financial institutions, interested in participating  in this venture. So there is a desire and ability to do the financing locally.

As a historical note on the whole Tyan issue, below is a historical narrative of the actions taken during past administrations.

Along these lines, may I again bring up an old proposal made a few years back to construct a permanent GovGuam Executive  offices for the line agencies.  Presently the line agencies of GovGuam are scattered all over the Island, making it difficult for the citizenry to communicate and transact business with GovGuam  Placing these executive agencies back in the center of Agana would revitalize Agana, and make Agana the capital of Guam like it used to be.  This would also realize the dream of Governor Calvo to revitalize and re-energize  Agana.  The present site of the abandoned Administration building would be an ideal site for the Twin Towers (GEMINI TOWERS), together with a 2,500 car parking building.  Each tower can have from 150,000 square feet to 250,000 square feet of office space.  The enormous rental cost  savings to the GovGuam Treasury would be enormous.  See the attached plans.