CDA gave Hocog until Aug. 15 to submit his written proposal, and because of his failure to do so, acting CDA Executive Director Oscar Camacho yesterday said they are now “moving forward to make an announcement for a hotel management arrangement for Sunset Villa.”
The property, which is on the main road in Sonton, is the only beach front hotel on Rota. It has 14 unit rooms and has total land area of 6,421 square meters. It was foreclosed in 2001.
The property was originally valued at $1.2 million and has a loan obligation of more than $1 million to CDA.
Properties are foreclosed if their owners fail to keep up with their scheduled payments on outstanding debts owed to CDA over a period of time. Foreclosed properties become CDA assets.
According to Camacho, they failed to sell the property for the intended price ceiling of $750,000.
“All the proposals we received are less than the amount and we did not agree on the terms and conditions of the acquisition,” he said.
The “low price proposals” reflect the “bad economic conditions” of the CNMI, but Camacho said the CDA board must “protect the agency’s investment.”
CDA, meanwhile, has asked the Department of Public Works to estimate the scope of work needed for the planned renovation of the hotel, which may cost up to $50,000, according to CDA’s earlier estimate.
“We’re spending a lot of money which is OK because it creates purchases on Rota…but it is better if the hotel is up and running regardless of whoever operates it,” he added.
