CDA acting Executive Director Oscar Camacho yesterday confirmed that “nothing happened” during the negotiations.
CDA, he added, is now considering plans to use the property.
CDA will move its offices to the former hotel to realize some savings, Camacho said.
CDA is paying $8,000 a month, excluding utilities, for its offices at a privately owned building on Middle Road.
“We’re planning to move the offices [to Gardenia]. We believe that we can able to recoup our investments if our offices will be situated in that property,” Camacho said.
CDA required a $1 million minimum bid for the Pacific Gardenia property after it entered into an agreement with the Department of Finance to settle the outstanding tax obligation of the hotel’s previous owner amounting to $1.4 million.
Camacho said it has been agreed that the government will get 30 percent of whatever is the price amount of the hotel, or $300,000, based on the $1 million minimum bid.
But there were no takers, he added.
CDA may move its offices to the former hotel by the end of fiscal year 2009.
Camacho said their offices will be relocated to the ground floor of the building. Its second floor and the beach site will still be available for sale or lease.
He said CDA has cleaned up the property and removed “unnecessary structures.”
“We’re hoping to do some more cleaning and renovation to be able to fit our offices. We’re slowly moving into that direction,” he said.
The locally owned Pacific Gardenia Hotel and Sunset Bar & Grill was one of the most popular establishments on island before it shut down due to its mounting debts.
