During the board meeting on Wednesday, NMHC board announced acquisition of the apartment for $380,000 from CDA.
Valley Inn sits on three lots — 7,153 sq. m., 750 sq. m. and 325 sq. m.— in As Lito, Saipan with the last appraisal put its value at $677,628.
NMHC became the official owner of the apartment on July 28.
The board also approved the management agreement between NMHC and Valley Inn Inc. to operate and maintain the apartment for 90 days.
According to NMHC, Valley Inn Inc.’s Jean Sablan will run the operations of the apartment for 90 days with all expenses to be incurred paid for through the rental revenues.
CDA and NMHC legal counsel Vicente Salas explained that Valley Inn Inc., the company that formerly owned the apartment of the same name, will have the same agreement as it had with CDA.
“When CDA acquired the property, CDA allowed her company Valley Inn Inc. to continue overseeing the operations of the apartment,” he said.
He said the drafted agreement allows Sablan to continue the management of the apartment Valley Inn.
The property, now owned by NMHC, will be operated through the rental revenues that Sablan’s Valley Inn Inc. will remit to NMHC. The latter will take care of maintenance costs.
“Any expenses incurred in the maintenance will be sourced from the rental revenues,” he said.
According to Salas, part of the agreement allows Sablan to occupy a two-bedroom unit with a standard rate of $600 per month while her two employees will be paid for through the rent.
“All expenses will be paid for by the rental revenue,” Salas said.
He also said the central government is paying for utilities — power and water — and there would be excess funds although he said it wouldn’t be that much.
For Salas, it is a temporary situation and only until the central government steps up to the plate and takes over to run it as a medical referral building.
NMHC administrator Joshua Sasamoto reported to the board that he had spoken with then acting Gov. Eloy S. Inos and told him NMHC could no longer wait until the privatization of the Commonwealth Health Center.
“I informed him that is not possible,” he said.
He also said the Valley Inn is now ready for medical referral patients to move in.
He also said Tinian Mayor Ramon M. Dela Cruz had been informed that Valley Inn can now accept patients from Tinian.
“We had an understanding with the governor, whenever there are any medical referral patients from Tinian and Rota they can immediately move to the Valley Inn,” he told the NMHC board.
In the interim, NMHC needed 90 days — from Aug. 1 to Nov. 1 — as they committed to get all the tenants out. After 90 days, there will be no more tenants and the apartment will cease operating as such and become a guest house.
Sasamoto also informed the board that all tenants had been informed of the situation long before NMHC took over.
“They knew even before we bought it. We informed them,” Sasamoto said.
Salas further explained that 90 days were needed to move the tenants out in a lawful, orderly manner.
He also told the board the Uniform Relocation Act provides for the relocation of the tenants to another comparable apartment.
