By Gemma Q. Casas
Variety News Staff

THE cash-strapped government is seeking a refinancing scheme to pay off its debt to the original owners of La Fiesta Mall.
Press Secretary Charles P. Reyes Jr. said the Fitial administration wants the property leased or sold to private investors but “there are no serious inquiries right now.”
He said the Department of Finance wants a refinancing scheme that will allow the government to pay its more than $3 million balance to Cocos Lagoon Development Corp. and Hotel Nikko Saipan.
The Babauta administration purchased the $7.5 million mall in 2004 to serve as an extended campus for Northern Marianas College’s Pacific Gateway Project.
The project was designed to open NMC to international students, but it was abandoned due to lack of funding, among other issues.
NMC transferred its ownership interest in La Fiesta to the central government after the California-based Western Association of Schools and Colleges expressed concerns about the college’s $1 million in unnecessary expenses to maintain the property.
The government made a $3.5 million down payment to La Fiesta’s original owners mainly through the use of federal grant money.
The $4 million balance is to be paid on an installment basis, or $200,000 every October of each year until 2023.
Last year, the administration said it received four inquiries from foreign developers about acquiring the property.
But their interest apparently waned due to the islands’ worsening economy, Reyes said.
The Commonwealth Utilities Corp. temporarily used the mall for its offices only to return to its original location in the Joeten Dandan building.