The board later went into an executive session — a closed door meeting — to decide on the proposals.
Arctic Circle Air, represented by its president Anthony Pellegrino, Jim Parrish, Paul Zak, Herman Deleon Guerrero, and Isidoro T. Cabrera asked the board to consider their proposal, describing it is an opportunity to revitalize local agriculture, spur economic activity and alleviate the plight of the local farmers.
Pellegrino told the board he would like CDA to invest and that he was not asking for a loan.
“Please come in as an investor,” he added.
Pellegrino also expressed his appreciation to CDA, which was then called Economic Development Loan Fund, when it extended a $375,000 loan to help him start his business which has now been operating for 26 years.
He also shared his successes with his bottled water business and shrimp production.
He told the CDA board that with Arctic Circle Air, he is presenting an idea which he feels strongly will alleviate the economy.
For Pellegrino, there’s an opportunity to tap into the Guam market; however, local farmers have been handicapped by transportation. “The freight is killing me,” he said.
Pellegrino said Guam is importing $4.4 million a month in fresh fruits and vegetables and over $800,000 a month of pork.
He intends to put up a slaughterhouse that can produce 15,000 lbs of pork a month.
There has to be a way that can get the produce to the market “conveniently, expeditiously, inexpensively, and constantly.”
So, he said, he formed the company called Arctic Circle Air that will encourage and motivate the farmers to go back to farming. “I want the people of the CNMI to be actively involved as investors.”
Deleon Guerrero, who’s involved with Arctic Circle Air dealing with investor and community relations, sees the venture as an opportunity to rescue the economic situation of the farmers and the community.
Cabrera, an agriculture consultant, told the board that he will be recommending the type of crops to grow on which type of soil
Northern Marianas College – Cooperative Research Extension and Education Service Director Ross S. Manglona told the board that they may not be able to express support for the company, but he would like to support the concept.
“This is a concept that has an approach that tackles many areas of the local agriculture industry,” he said.
Business consultant Zak told the board that the key is transportation. “Without transportation we don’t have anything.”
He said they are looking at the ability to move products to the market — Guam and beyond.
Although they have the technical know-how and the mechanism to do it, Zak said they lack cash.
“This is an opportunity for development,” he said.
He added that their business plan unites all the islands.
“It takes an entrepreneurial spirit to do it,” he said.
Solar farm
For his part, Marianas Business Plaza owner Erick Van Der Maas asked the board if CDA could guarantee his loan with a major bank as he plans to embark on a $1.5 million project to build a solar farm in Susupe.
Given that the cost of utilities is high, Van der Maas said they expect a $40,000 income from the project.
Van Der Maas, who’s also an investor of Arctic Circle Air, said he would be constructing a solar farm in the parking lot which will involve 2,100 solar panels that can produce 90,000 kilowatts a month.
“I am applying for a loan with a major bank and then CDA through the new program will help with the loan guarantee,” he said.
CDA loan manager said Van der Maas’ project is looking at tapping into the Small State Business Credit Initiative, a federal program that allows CDA to serve as guarantor for loans for small businesses.
CDA executive director Manuel Sablan in an earlier interview said the program consists of two components: loan guarantee and loan participation.
Interested private lenders should contact Sablan at 234-6245.
Investors interested to join Pellegrino’s venture should email [email protected].
