Lt. Gov. Mike Cruz said USDA officials have assured him that the loan would be approved quickly provided that a debt service guarantee is in place.
“Unlike previous financing opportunities, this tangible investment will generate revenue through admission fees, potentially expand out tourism base and enhance our overall marketability as a destination while preserving our culture and heritage for future generations,” Cruz stated in a letter to Speaker Judi Won Pat.
On Tuesday, the Legislature deliberated on Vice Speaker BJ Cruz’s Bill 179, which would authorize the use of excess bond proceeds for payment of the pending USDA loan.
The Legislature moved the agenda to the third voting file date set for Friday.
During the session, the bill was amended to raise the amount of loan application to $25 million. The additional $5 million, if received, would be used for the restoration of Plaza De Espana.
Vice Speaker Cruz said the loan payment would be obtained from the savings that the government would make from the $56 million bond that the government has been paying over the last 15 years.
The bond was acquired 15 years ago for the pavement of San Vitores road in Tumon.
“The Tourist Attraction Fund guaranteed payment of $7 million annually toward paying off a $56 million bond that Governor Gutierrez, during his administration, acquired for this particular project,” Vice Speaker Cruz said.
“Every year over the last 15 years, $7 million was taken straight off the top of the Tourist Attraction Fund that raised a savings of $18 million to $20 million,” he added.
The lawmaker said TAF will cover only $4.5 million payment next year.
“So, $2.5 million from the TAF high waste bond amount provided should be sufficient to make the guarantee of the loan payment on this new loan to fund an education/museum facility. The amortization would be an estimated 1.5 million yearly toward the $25 million USDA loan payments,” the vice speaker explained.
