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The more the merrier StayWell partnership opens doors for medication

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In the pipeline The BOS is back Military continues Another bridging contract rears its head Volume 16 No. 18 www.mbjguam.com January 7, 2019 - January 20, 2019 strengthening strategic fuel infrastructure t INDEX Save us a place BY MAUREEN N. MARATITA PLAIN ENGLISH...... 2 Nauru Airlines to add Majuro flight; Guam link Journal staff JAPAN...... 5 MARSHALL ISLANDS...... 6 BY MAUREEN N. MARATITA at family friendly Aside from its bomber presence EDITORIAL...... 8 Journal staff times. This service and strategic importance, Andersen OPINION...... 8 was introduced as Air Force Base is not only a potential launch pad for any military engage- COMMENTARY...... 9 Nauru Airlines will strengthen a result of demand ment, but a strategic refueling and EDITORIAL CARTOONS...... 8, 9 its routes to the North Pacific with a from passengers training station. second flight to the Marshall Islands for an additional QUOTABLE...... 9 It is host to the 506th Aerial from Jan. 15. service and will LEGAL BRIEFS...... 12 Refueling Squadron and various The route from Nauru to Majuro enable our pas- KC-135 Stratotanker units, or aerial PALAU...... 15 stops in Tarawa in Kiribati. sengers more refueling planes. BRIEFCASE...... 18 Peter Sheehan, CEO of Nauru flexibility to work, The KC-135s typically rotate every Airlines, told the Journal, “Nauru stay and play at LEGISLATIVE ROUNDUP...... 20 Sheehan three months for aerial refueling Airlines is proud to add an addition- the destinations CORPORATE GIVING...... 20 and other training. Each KC-135 can al service on our Island Hopper route. we service.” hold about 35,000 gallons of fuel and DATABANK...... 22, 23 Not only does this flight provide a sec- Nauru Air Corp., which does Andersen has other fueling capabili- ond service for our passengers from business as Nauru Airlines ties on the ground. across the Pacific and the world, but is headquartered at Nauru The planned Marine Corps in- it also provides a mid-week service SEE SAVE ON PAGE 4 creased presence on Guam will also include an aviation squadron compo- In the bag nent at Andersen. Add in geopolitical concerns and

PERMIT NO. 76 PERMIT NO. it’s not surprising the U.S. military is U.S. POSTAGE PAID POSTAGE U.S. USPS MARKETING MAIL USPS MARKETING

BARRIGADA, GUAM 96921 GUAM BARRIGADA, continuing to harden and broaden what was an essential but aged fuel delivery infrastructure. According to Andersen, the new pipeline that delivers fuel to the air base opened in February, and is capable of delivering more than

Photo courtesy of Pay-LessPhoto courtesy Supermarkets four million gallons of jet fuel a day. Andersen said in an April 3 story on its website about the pipeline that the new infrastructure effectively dou- bles its capability to deliver fuel. LABEL Pipeline work is still continuing SUBSCRIBE with lucrative opportunities for the companies that will work on them. A Californian joint venture re- PUT YOUR NAME HERE — HERE NAME YOUR PUT ceived additional work on Dec. 27. A rendering of the entrance to the new Pay-Less Supermarkets Maite branch, which is expected to open in May. The branch will replace the Agana Shopping Center branch as the company’s flagship store. For more updates SEE PIPELINE ON PAGE 13 on Pay-Less Markets Inc.’s plans for the new year, see the story “Pay-Less has big plans for 2019” on Page 17. 2 January 7, 2019 - January 20, 2019 www.mbjguam.com Marianas Business Journal Governors, great words and glimpses of the future

I hope you had a wonderful fes- for Glimpses dividuals who are rising to the standing that it’s never “We can’t do tive season. The Maratita Christmas Publications challenge and appointments that that,” but “How can we do that?” was enlivened by our much appre- and of course make sense. I hope for the best and As word of the theme leaked out ciated but 20-year old fridge-freezer for the islands. leadership with substance. (but not the ‘beneficiary’) I actual- giving up the ghost of Christmases Looking And no new taxes or increases ly got calls from people wanting to Past on Christmas Eve. forward, we in them. … buy tickets. … We lived through the holiday by have some taking our sustenance from the bar interesting If I had a seasonal sense of The theme of the 2018 Guam fridge and a cooler. and fun pro- what resulted from the increases Business Magazine Executive of We truly appreciated the jects and our in our cost of living following the the Year gala on Feb. 2 at the Hyatt Christmas Eve generosity of our aim is always PLAIN increase of business privilege and Regency Guam is also set. It is neighborhood friends. Forget to bring you ENGLISH fuel tax, it was the noticeable lack “EOY’s Got Talent” — and the ben- “Merry Christmas.” As Mary and unique news of Guam’s Christmas decorations, eficiary is the Guam Chapter of the Joseph can verify, there are no bet- and views and Maureen N. Maratita followed by lists of decoration sales American Red Cross. ter words than, “I have space for your creative as Christmas drew closer. … The seven nominees are defi- you” in such circumstances, and we marketing nitely in the “We can do that” gratefully hauled our goods down messages across our publications. … Right now the incoming admin- mindset and I can promise you a the street. istrations in the region are about to special evening. I can’t give any se- Buying a new fridge-freezer For governors and leaders who celebrate. I am sure their inaugu- crets away, but I can hardly wait for followed. met their term limits, I am sure ral events will be truly memorable rehearsals and the gala. Now we are dealing with the they wonder if there is more they occasions. Or sharing the extensive menu. disposal of the old fridge, which could have done to complete their For those of you reading this Please check the ad further my husband tells me must go to its stated agenda. outside of our region, trust me — we into the paper and make your res- white goods grave Freon-free. … In Guam, names of major agency do parties really well in the islands. ervations if you haven’t already appointees to the Leon Guerrero- We certainly get enough done so. … Maureen: “How do you dispose Tenorio administration are coming practice. ... of Freon?” out. As usual there have been rum- — Maureen N. Maratita is publisher of Husband Ken: “Carefully.” … ors on appointments. We also hear I remember some years ago for a Glimpses Publications, which comprise Marianas a couple of positions are difficult to significant birthday I decided to cel- Business Journal, MBJ Life, The Real Estate Journal, I am writing this a few steps into fill and that there are people who ebrate, and deputized my husband Guam Business Magazine, Beach Road Magazine, the New Year, and so it’s a time to re- have turned down offers. and enthusiastic friends to help. We Buenas and Drive Guam. flect on 2018 and what 2019 holds But there are also worthy in- started with a theme and the under-

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Follow us @dusitthaniguamresort for more information Marianas Business Journal www.mbjguam.com January 7, 2019 - January 20, 2019 3 LeoPalace to add more golf-side units

BY JOHN I. BORJA The new units will each have Journal staff three bedrooms and two bath- rooms, a two-car garage and high ceilings in its living room and LeoPalace kitchen spaces. The standard Guam Resort is size will be approximately 2,454 entering a new square feet. They will essentially Photo by I. Borja John market in 2019 be an updated version of the ex- — homes for isting leased units, Phillips said. sale. Aside from the surrounding golf It’s a “step courses, there is a communal over the fence” pool for the Golf Villa residents. compared to Residents can also take advan- LeoPalace Guam Resort is set to build at least eight new units for sale in its Golf Villa within what the busi- tage of the many amenities found 2019. ness is used to, Phillips at the hotel: bowling alley, swim- given its stacked ming pools, restaurants, sports and see completion within the year, Once LeoPalace management fi- dwelling inven- bar, spa and more. Phillips said. Rim Architects de- nalizes details on the new homes, the tory in its hotel, condominiums The first four duplexes of eight signed the duplexes and Join Corp. team will set up an open house for and leased duplex units scattered units are expected to break ground is handling the construction. the public to view, Phillips said. mbj throughout the Yona property. The numerous amenities of the resort and its seclusion has kept dwelling units in high demand, so much so that there’s a waiting list for a unit to open up, according to Residential Leasing Division Manager Lisa Phillips. Realizing positive trends in the economy as a result of the military buildup and increasing demand for homes, Phillips said it was an op- portune time to begin construction on new units. “For a while we’ve been comfort- able with what we had and since the [leased] villas were built, we’ve had people calling us to inquire if they would ever be up for sale. These new units are a way to address that,” she said. The new homes — a site map in- dicates 38 units within 19 duplex buildings — will be built within LeoPalace’s Golf Villa, which cur- rently has 52 leasing units. As the name suggests, the villa commu- nity is lined up along the resort’s golf courses and are located be- hind the four towers. The leasing units are nearing capacity; 48 of the 52 units are already accounted for, Phillips said. “It’s been a while since we’ve Camilo Lorenzo built new units here. The first units were built more than 20 years ago POSITION: Account Executive and there hadn’t been a new unit LOCATION: Asan, Guam since,” she said. “At this time, we don’t have anything in black and DATE HIRED: August 24, 2010 white on [homeowners associa- NOTES: Overcame a life-debilitating injury from a 2003 tions] or pricing, but we’re very car accident. Special Olympics Board Member, 2018 excited to be moving forward on Master’s Degree Candidate. Avid coach and participant in family’s Agat Lakers youth basketball camp. these new villas because it’s a new market for us.” Although the purchasing price hasn’t been finalized, Phillips said the projected figure starts at $600,000 per unit. She added that the units would be especially pop- ular among executives and those who appreciate the resort’s lifestyle. Matson’s people are more than Guam shipping experts. They are Some of the potential buyers are part of what makes our community unique. Visit Matson.com already residents of the resort and have been waiting for a unit to be up for sale, she said.

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SAVE erty and mail between Nauru and Nadi services commence operations the first half of 2019.” CONTINUED FROM PAGE 1 the United States. Because Nauru smoothly. Concurrently our team In September 2015 the presi- was not able to establish a credible will also be finalizing and imple- dents of Palau and Nauru signed an International Airport, with its aviation safety oversight author- menting the new Guam service for air service agreement — not for the operations office based in Brisbane, ity, Australia — through its Civil the first half of 2019 as an extension first time raising the possibility of an Queensland in Australia. Aviation Safety Authority — agreed of the Island Hopper service. “ air link between the two countries. Its fleet is comprised of four to provide the necessary regulatory Additionally, he said, “Behind the “We have a number of plans we Boeing 737-300 passenger planes jurisdiction over Nauru Airlines. scenes we have some very exciting are working on and evaluating. The with six business class seats and The weekly Guam flight will plans being developed that range Pacific network has some great op- 110 economy seats, plus a 737-300F stop at Tarawa, Majuro and Pohnpei from improved in-flight products, portunities and whilst we have no dedicated to cargo. (continuing the Nauru Airlines better web and booking engines, firm plans for Palau, never say nev- Nauru Airlines increased service present route) using a Boeing 737- further network inclusions and re- er,” he said. to Fiji on Dec. 19, with a second 300 aircraft, and according to the gional relationships.” Nauru Airlines continues to take weekly Nauru-Nadi flight for four application has an annual capacity The Nauru Airlines team is work- advantage of business opportunities. weeks for peak season. of 5,000 passengers. The applica- ing hard towards the Guam service, Sheehan said, “We share a close The airline also has further tion was granted in April 2017 for he said. relationship with many airlines plans to expand, with the return of five years. “I visited Guam in late 2018 and in the Pacific region and are open a flight to Guam. Sheehan said while Nauru can say with certainty it is a des- to partnerships when they arise.” In October 2016 Nauru Airlines Airlines presently plans to attend tination I look forward to visiting The airline is presently working applied for an exemption and for- to its latest flights, it is still pursuing again. The people and sights make closely with Air Vanuatu and con- eign air carrier permit to engage in the option of a flight to Guam. this destination what it is and we ducting charter operations between scheduled and chartered foreign “Our current focus is on ensuring are hopeful this is a service our Brisbane and Port Vila, he said. air transportation of persons, prop- our mid-week Island Hopper and passengers can look forward to in Sheehan took up the position of CEO in July, coming to the airline with more than 20 years of expe- rience in aviation that include the Royal Australian Air Force, express air freight, ground handling and commercial airlines. Appointments include director of Agri-nomics Australia, chief op- erating officer of Aero-Care Flight Support Pty. Ltd. and executive gener- al manager of Australian air Express. Sheehan holds a master’s in integrated logistics from the Massachusetts Institute of Technology, a graduate diploma in industrial relations and human resources from the University of Melbourne and a bachelor’s in business management and admin- istration from the University of Queensland. He is a fellow of the Chartered Institute of Logistics and Transport in Australia. Reflecting on his time at the air- line, he said, “I am incredibly proud of all Nauru Airlines has achieved in 2018. We have shared some incred- ible moments and have transported families, business people, cargo and more across the Pacific. We look for- ward to sharing more of our island hospitality with our passengers in 2019,” he said. There continue to be opportuni- ties and demand for air travel in the region, Sheehan said. “There is a huge demand for trav- el across the entire Pacific, and we as an airline are committed to opening up the Pacific with our network. Our analysis has identified an increase in travel across the Pacific and this uptake shows no signs of abating.” Nauru Airlines provides air ser- vices to Pohnpei in the Federated States of Micronesia, Honiara in the Solomon Islands, Brisbane, Nadi in Fiji, as well as charter services, ac- cording to Journal files. The airline rebranded on Aug. 1, 2014 as Nauru Airlines, after eight years as Our Airline. The airline last flew to Guam in the first quarter of 2001.mbj Marianas Business Journal www.mbjguam.com January 7, 2019 - January 20, 2019 5 Japan a significant tourism competitor

BY JULIAN RYALL Prefecture, the attractive natural media, such as the Weibo and group visas,” he said. “Multiple-trip Japan Correspondent environment and a whole host Wechat platforms, to reach 20- and visas are also on the increase, show- of unique festivals, such as the 30-something travellers, as well as ing that we have a strong flow of Hirosaki Castle snow lantern families. The key words for both repeat visitors and we expect that TOKYO — Japan’s tourism in- festival, the Yokote igloo festival categories are food and unique ex- to continue. dustry reported another significant and the world-famous Aomori periences, said Matsuda. “We are also finding that wealthy landmark on Dec. 18, with the Japan Nebuta festival. Shiro Aoki, deputy general Chinese people visit repeatedly, go- National Tourism Organization an- “For their first few visits, Chinese manager of the Inbound Travel ing to places that are difficult to nouncing that the total number of visitors still choose to go to Tokyo, Promotion Group at the Japan reach and are not very well known visitors arriving since the turn of Osaka, Hokkaido and Okinawa, Association of Travel Agents, says among Japanese people, such the year had broken through the 30 but they seem to get more adven- Japan has also benefited from the as Engetsu Island in Wakayama million barrier for the first time. turous after that and head off to relatively low value of the yen, Prefecture, which is popular with That puts the nation firmly on Kyushu or the Hokuriku region or which has made Japan good value Chinese people for its beautiful course to meet the target of 40 mil- Shikoku,” said Keiko Matsuda, sen- for money, while there have been no sunsets,” he said. lion arrivals in the year 2020 that ior assistant manager of the JNTO’s geopolitical tensions in recent years. The one significant drawback to Prime Minister Shinzo Abe an- East Asia Overseas Promotion “In the past, travellers on pack- the sharp rise in tourist numbers nounced in early 2016 — a figure Department. age tours constituted the largest has been congestion in some of the that many people believed at the To continue spreading the part of inbound Chinese visitors, must-see destinations, including time was simply too ambitious for word about Japan as a destina- but nowadays the number of peo- a nation that had seen a mere 7.1 tion, the JNTO is utilising social ple in individual visas exceeds SEE TOURISM ON PAGE 7 million visitors as recently as 2011. The 2020 figure will inevitably be boosted by spectators attending the Tokyo Olympic Games, but the growth of Japan’s tourism sector is extraordinary by any measure and has made Abe appear some- thing of a visionary. It has also been extremely convenient for his gov- ernment as he attempts to diversify into new sources of income away from Japan’s more traditional in- dustries. A total of 2.45 million foreign- ers arrived in Japan in November, the last full month for which statis- tics are available, up 3.1% from the same month one year previously. Statistics provided by the JNTO show that the largest national group came from South Korea, with more than 622,000 tourists, fol- lowed by 567,000 from mainland China and slightly over 363,000 from Taiwan. Hong Kong made up the next largest segment of the to- tal, with nearly 173,000 arrivals, followed by 94,533 from Thailand, 50,521 from Singapore and 40,597 from the Philippines. In total, slightly more than 85% of all arrivals came from other parts of Asia, with just over 11% from Europe, the Americas and Australia. Significantly, Japan is now at- tracting repeat visitors from other parts of Asia rather than the one-off travellers of years gone by, a posi- tive development that has largely been driven by a burgeoning middle class with a desire to show off their new-found wealth, effective promo- tional campaigns by the JNTO and the government’s decision to relax visa requirements for many other Asian nations. The JNTO has identified a number of trends among Chinese tourists, for example, with the Tohoku region of the main island of Honshu proving particularly attractive due to the winter sports opportunities in the Akita 6 January 7, 2019 - January 20, 2019 www.mbjguam.com Marianas Business Journal Warming ocean water is ultimate challenge to island tuna revenue

BY GIFF JOHNSON over 50% in Tuvalu, 40% in the Marshall Islands Correspondent Federated States of Micronesia and 12% in the Marshall Islands. In 2014, PNA set $8,000 as the MAJURO, Marshall Islands — benchmark price for a fishing day. Although fisheries are rarely the But since setting the minimum focus of climate studies that tend price for a fishing day at $8,000 and to address sea level rise, ocean at the same time limiting the total flooding of land and increased number of days that can be sold in frequency of severe storms, recently one year, the PNA has seen fishing released reports put the spotlight on day fees skyrocket because of

how a changing ocean environment demand. When Papua New Guinea Photo byJohnson Giff will impact both commercial tuna first bid out its VDS fishing days in fishing and smaller scale, coastal 2015 to 2016, it was paid an average marine resources. of $10,000 per fishing day, with a The release of three recent reports high of $12,000. In 2018, PNG set a suggesting that warming ocean minimum of $10,500 for bids. water is likely to push tuna schools The Marshall Islands and the New studies predict that warming ocean temperature from global climate change will push east — and in some cases south — of FSM have seen massive revenue tuna east and south of current fishing zones, with major financial implications for many is- their current location in the western change under the VDS. Prior to 2010, lands that now depend on revenue from catches in their exclusive economic zones. Pictured, a tuna transshipment in progress in Majuro. Pacific Ocean has major financial these two countries averaged about implications for Pacific islands that $1,100 per fishing day. Now they depend heavily on money from average about $11,000 per fishing While PNA has dramatically a report issued by scientists at the commercial tuna fishing. day sold, according to PNA officials. changed management of tuna Pacific Community in September. Through implementation of Fishing days that five of the fishing in this region, what happens It’s not only commercial tuna the vessel day scheme by the nine smaller PNA islands put into if the fish migrate to cooler waters in fishing that will be affected, say islands that are part of the Parties to a “pool” for 2019 were sold in the coming years? Projections based scientists studying climate impact the Nauru Agreement, tuna fishery December for $12,600 each — a on climate change show “an eastern on fisheries. “Climate change is revenue has skyrocketed since 2010 record for pool day sales. Pool days shift in the biomass of skipjack very likely to increase uncertainty when it amounted to $60 million. command higher fees because the and yellowfin tuna over time, with in replenishment of coastal In 2018, it is estimated at close to fishing boats that buy pool days get a large and increasing uncertainty fish stocks, requiring a more half a billion dollars. Today, tuna multi-zone access instead of access for the second half of the century, fisheries revenue accounts for 80% to a single zone if they buy fishing especially for skipjack tuna,” said SEE WARMING ON PAGE 7 of government revenue in Kiribati, days from one PNA island.

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TOURISM WARMING economic development of Pacific presentation titled, “Where will CONTINUED FROM PAGE 5 CONTINUED FROM PAGE 6 island countries and territories.” tuna be in 30 years’ time?” Its “Larger proportions of the catch summary is concise about what Kyoto and Nara, coupled with a conservative community-based of each species is increasingly climate science models predict: shortage of accommodation at ecosystem approach to fisheries expected to be made in international • a decrease in tropical tuna bio- certain times of the year, such as management,” said a UN Food and waters, making the monitoring and masses in the Pacific; cherry blossom season in the spring. Agricultural Organization report on control of fisheries more difficult,” • a shift of the biomass of trop- As a result, the JNTO is working climate impact on fisheries issued SPC said. Currently, most of the ical tuna towards the east and hard to encourage visitors to get off in mid-December. world’s skipjack tuna supply is towards the south for albacore; the well-worn “Golden Route” that Still, the SPC report cautions caught within the exclusive and links Tokyo with Kyoto and Osaka that effects of commercial fishing economic zones of the PNA islands. • a strong impact at the national and to be more adventurous. on the tuna biomass in the western The FAO report expanded on this (island) level. Operators say that message res- Pacific “strongly outweighed the point: “Redistribution of tropical “The main driver of changes is onates particularly with Europeans. decreases attributed to climate tuna is very likely to affect license the warming (ocean) temperature,” “Japan is a hot destination, offer- change. Thus, fishing pressure is revenues from purse seine fishing SPC said. ing history, nature, beaches, skiing, expected to be the dominant driver and shift more fishing into high This is not good news for island city life and traditions,” said Kaori of tuna population status until at seas areas. Priority adaptations to nations who currently control Mori, of domestic travel giant JTB least mid-century.” maintain the economic benefits of waters where most of the tuna are Corp. “Japanese animation and SPC pointed out that projected industrial tuna fisheries will need to caught. SPC reported that in 2014, manga has been popular in Europe changes in abundance and focus on interventions to maintain 2.8 million metric tons of tuna was for many years and now the chil- redistribution of tuna species license revenues and ensure delivery caught in the western Pacific Ocean dren are big enough to go to Japan, related to climate change “could of fish to local canners.” — 56% of the global catch of tuna which is another reason why more have significant implications for the The SPC also generated a valued at $5.3 billion. mbj people are travelling to Japan. Also, it used to be old retired couples travelling to Japan, but now we see younger people visiting, including with their children.” There has also been growth in the area of specialized tours, Mori pointed out, such as to visit Japan’s spectacular formal gardens for bird-watching or trekking. Ignatius Cronin, head of in- ternational public relations for the landmark Imperial Hotel in Tokyo, says there are many things to recommend Japan for every va- riety of visitors. “I believe the increase in ar- rivals reflects the broadening appeal overseas of Japan’s sheer novelty, its more contemporary, newly emerging culture and the fanaticism that normally accom- panies it,” he said. “It’s things such as anime, high fashion, the computer game phenomena, the bizarre but safe idiosyncrasies of the youth here, the contemporary architecture and the varieties and acclaimed quality of Western food — as well as the attraction and popularity of some conventionally traditional Japanese cuisine. “And where else in the world will you find trim, uniformed at- tendants bowing to departing and arriving buses at the curb at the air- port?” he said. “Or students bowing to swimming pools or to gymnasi- ums or to running tracks after their extracurricular sports exercises have finished for the day and they are leaving? “I’m sure the rest of the world finds this both fascinating and meaningful.” mbj

FOR ADVERTISING AND SPACE RESERVATION Call TROY A. WHITE (671) 649-0883 email: [email protected] 8 January 7, 2019 - January 20, 2019 www.mbjguam.com Marianas Business Journal Editorial Opinion A step into the Federal contracting: the outlook for 2019 new year, and BY BORIS HERTSLET ship repair has a $30 million funding limit. $5 and vehicle million has already been awarded beyond rentals. This and the MACC is set to expire July As per a New Year’s Day search trend should 2021. of the Federal Procurement Data continue for The HUBZone MACC, scheduled to The signing of public law 20-84 System, Guam-based businesses 2019. expire in November 2020, has a cap on Dec. 31 by Acting Gov. Victor won more than $300 million in A little over of $245 million and $228 million has Hocog pacified a debate that has federal contracts in 2018. This $200 million already been awarded. With less than been in the works in the Northern figure will certainly increase as the was awarded to $20 million left in the funding bucket Mariana Islands for years. The law, U.S. Department of Defense awards locally-based for the current HUBZone MACC, which both extended the lease cap under $7.5 million are only reported construction HUBZone certified construction on public lands from 25 years to 40 after a 90-day hold of the data. The companies. For Hertslet and construction related companies years, while offering an additional full picture for 2018 should be much of the should get ready for a new HUBZone 15-year lease extension afterward, available by April 1, 2019. construction MACC solicitation to be released in and forgoes another request for Out of 5,276 contract actions activities on Guam, DOD uses 2019. proposal for many of the lands by awarded in 2018, 4,915 or 93% were Multiple Award Construction The 8(a) MACC, scheduled to submitting appraisal reports of the awarded by DOD. This is consistent Contracts, or MACCs. MACCs expire in August 2020, has a cap of property. with previous years as DOD is by usually last for five years, have a $75 million and $69 million has The debate began — assuredly — far the largest federal agency on the specific funding limit and are tied already been awarded. This MACC well prior to any official dialogue island. The top five items purchased to a federal small business set-aside. will certainly be re-solicited in 2019 but was brought to the legislature by DOD on a continuing basis were For instance, the Service-Disabled loudly in 2011 when the NMI was food, fuel, communication services, Veteran Owned Business MACC SEE FEDERAL ON PAGE 10 able to revisit the land restrictions 25 years after they were established. The bill requesting to extend the lease failed when put to vote in 2012, although the Senate Use and abuse of powers of attorney unanimously passed an initiative to change the regulations from a BY KIM ANDERSON YOUNG The more de- where the principal either travels 25% blood quantum for people tail, the better. extensively or is not available to of NMI descent to “at least some Once the docu- handle daily business. From a title degree” of Chamorro or Carolinian ment has been insurance perspective, a general heritage — prior to the bill being A power of attorney can be a use- used for its power of attorney is not trusted rejected by the House, according to ful tool in real estate transactions. intended pur- because we want to make sure the Journal files. When one party to the transaction pose, from a principal is fully aware and in agree- Over the last seven years, many cannot be available to sign docu- title insurance ment with the transaction at hand. were still in favor of progressing ments necessary to the transaction, point of view Temporary: A temporary power such a bill. Yet there were those that party (the principal or grantor of it is considered of attorney has a definite expiration who fought against it — fought, as the power) gives written authoriza- used and void. date and is void if not used prior to they said, for the right of those who tion to another person (the agent or Durable: A Young its expiration. are from the islands and “for the attorney in fact) to sign documents durable pow- Springing: A springing power of islands.” on their behalf. er of attorney attorney becomes valid following We recognize the importance of Powers of attorney can take is intended to cover different cir- a certain event. An example of a land ownership to the culture and many forms; the following are some cumstances and expected to last springing power of attorney would presence of our peoples and our of the basics: indefinitely. Durable powers of at- be me granting my husband my islands. But we also recognize the Special: A special power of at- torney are intended to survive the power of attorney in the event (and importance of land as a commodity torney is used for a specific event or incapacity of the principal, mean- only after) I was determined to be — and the importance it holds in use. For example, to sign documents ing that the attorney in fact can incompetent. the turnover and transactions of involving the sale or refinance of continue to manage the principal’s Most powers of attorney are an economy. As we hand down a house when the owner cannot business and affairs when they are fully revocable, however there are public land to younger generations, be present. The document should not capable of doing so. unique circumstances where ir- it is up to that generation to decide specify the property being sold, pur- General: A general power of at- revocable powers of attorney are what is best for the economy and chased or refinanced, the name of torney is mostly used for business its well-being — whether they want the buyer and the purchase price. transactions and in circumstances SEE POWERS ON PAGE 11 to keep it or whether they want to contribute to the transactions of investment that may have a longer and more lasting impact in the growth of the islands. The passing of this law is a slow but steady step in the right direction to not only enhance the attractiveness of the NMI to investors, but also to enable those in future generations who do want to stay and see the NMI flourish to make further decisions on how best to utilize public lands. mbj Marianas Business Journal www.mbjguam.com January 7, 2019 - January 20, 2019 9 Commentary

Quotable

“If you read all the government releases, you’d think we’re having the greatest year ever, right? … It’s been a downhill slide since [the missile threat]. But the optimism you see coming out of the Visitor Bureau defies [that]. And the numbers defy that too. They keep saying the numbers are going up, right? But where are they staying? … I’m seeing false optimism, if you ask me. My theory about 2019 is hang on. It’s going to be a rough 2019.”

— George Chiu, executive vice president of Tan Holdings Corp., in an interview with the Journal on Dec. 27 articulating his continued concern for the hotel and tourism industry in 2019 as he sees no progress in the performance of his hotels despite the positive visitor arrival numbers reported.

Hotel and Restaurant Association; keep their obligations with the time when the local business bor- and a past member of the Finance bank. I was working in California rowing climate was tight. In addition, Budget Committee for the Guam during the early 1990s when mili- as a CDFI, we make ourselves eligible Visitors Bureau and the Make-A-Wish tary bases were closing throughout to act as a conduit for real estate de- Q & A Foundation board of directors. the state. Homeowners saw their velopers using tax credits or other Cruz has a 1990 bachelor’s in home values plummet and many U.S. Treasury sponsored programs economics and a 1996 master’s just walked away, even though to develop community or low in- in business administration with a they could afford the payments. come-based projects. Editor’s note: concentration in finance and banking That was not my experience here. Gerard A. Cruz from the University of San Francisco. During the years following the Q: What do you think are the top is president He is a 2018 Executive of the Year Japan bubble burst and the Asian trends in the financial services in- and CEO of the nominee. The winner will be announced Economic Crisis, residents worked dustry that readers should know Community First at the Executive of the Year gala on Feb. with banks to keep their homes and about as we move into 2019? Guam Federal 2 at the Hyatt Regency Guam. banks reciprocated. To be sure, de- Credit Union. faults in Guam increased, but there A: There are several, but my top Cruz began as Q: How did you decide that a ca- wasn’t the wholesale abandonment two are security and the use of intel- a management reer in finance was for you? that I saw in some affected U.S. ligent technology. Security is critical trainee in the neighborhoods. as more transactions occur remote- corporate A: I actually started studies in ly and so, protecting sensitive data banking group at Cruz economic development but realized Q: What does it take to become will be a constant challenge. Bank of Guam. that access to capital was a critical successful in financial services? The second trend will see the He worked as the component in development. So, greater use of intelligent technolo- chief legislative after an undergraduate degree in A: Everyone in this business gy to anticipate customer’s needs. aide at the Office of Senator Anthony economics, I pursued an MBA in needs to have basic skills in math Today, customers want the self-serve C. Blas from 1991 to 1994 before finance. I ended up in commercial and problem solving, but that does convenience of a robust mobile returning to the financial services finance after a few internships and not promise success. I think suc- platform, but simultaneously want industry in Larkspur, Calif. as a an entry level position in commer- cess takes several things, but here the personal concierge experience. secondary markets associate/intern at cial and mortgage banking and just are my top three. First, humility and Successful financial institutions will Headlands Mortgage Co., which now stayed in that industry empathy are important. We are, at find a way to mine the product use does business as GreenPoint Mortgage. our core, a service business. Second, and suggest services based on their He served as assistant vice president Q: What do you see as the most remembering that the reason for be- buying patterns. We see these sug- first as the manger for the Mortgage interesting aspect of the financial ing in business is the person sitting gestions extending beyond financial Banking Division from 1996 to 1999 services industry? across from you. The measure of services resulting in business to busi- and then in Commercial Lending from your success will be the experience ness partnerships that did not exist 1999 to 2000 at Citizens Security A: There are many important and an external client who needs your in the past and expanding the finan- Bank (Guam) Inc. In April 2000, Cruz interesting parts, but the aspect of help or an employee who needs cial institution’s value proposition. joined the credit union, where he has this industry that keeps me most your advice has with you. Third, since risen from vice president and focused centers on the topic of how commit to a program of constant Q: As a member of the Asia Pacific chief financial officer to executive vice to keep our business model relevant improvement and be consistent. Association for Fiduciary Studies, president and chief operating officer in an industry where products are what do you believe to be the and finally to president and CEO. quickly becoming commodities. I Q: CFGFCU is the only regional importance of this sort of organiza- He serves as the chairman of the spend a lot of my time with the board institution to be designated and tion, specifically in this region? board of governors for the Asia Pacific and management team discussing re-certified by the U.S. Treasury Association for Fiduciary Studies, the and testing ideas on this topic. Department as a Community A: This is a critically important treasurer and a trustee on the board of Development Financial Institution. organization for this region. I am trustees for the Government of Guam Q: Having started out in banking What is the significance of that? honored to have chaired this talent- Retirement Fund and as vice chairman in the U.S. mainland, what do you ed and dedicated group of leaders for of the board of governors at the Guam find to be unique about Guam’s fi- A: This is an important designa- the last 18 years. Collectively, we are Community College Foundation. He is nancial industry? tion for us. As a CDFI, we are given responsible for managing more than the past treasurer of the Rotary Club access to capital that we’ve deployed $3.5 billion in pension, trust and of Tumon Bay; a member of the Guam A: One difference in Guam is in the community. This helped stim- Chamber of Commerce and Guam families generally fight harder to ulate the business lending during a SEE Q&A ON PAGE 16 10 January 7, 2019 - January 20, 2019 www.mbjguam.com Marianas Business Journal

FEDERAL StayWell partnership to offer more pharmacy benefits CONTINUED FROM PAGE 8

BY JOHN I. BORJA cies regionally drugs,” said Chen Y. Mack, president as a pre-solicitation already exists at Journal staff and nationally and CEO of StayWell. “MedImpact’s the Federal Business Opportunities that would best pharmacy network provides flexi- website. Currently, there are only suit their needs, bility in receiving your prescriptions nine 8(a) certified locally-based StayWell Insurance is kicking and a medica- within its network.” companies. If you can prove social off the new year with a new phar- tion delivery Some highlights of the partner- and economic disadvantage for the macy partnership that will offer service made ship include MedImpact’s Direct majority owner(s) in your company, additional benefits for clients on available to Specialty, which caters to individu- then now would be a great time to its health care plan. Guam. More als with complex health conditions get 8(a) certified. The local insurance company than 64,000 who require specialized medica- Non-MACC or stand-alone partnered with MedImpact, a San pharmacies tions, and MedImpact’s mail-order projects are also forecasted for 2019. Diego, Calif.-based pharmacy benefit are MedImpact Mack program, where customers can have The MILCON Solicitation/Award manager that specializes in connect- participants, up to 90 days’ worth of covered for- Forecast spreadsheet, available at ing health plans with a network of including 25 from Guam and the mulary medications delivered right the Naval Facilities Engineering pharmacies with the intention of Northern Mariana Islands. to their door. Command website, details projects reducing costs and maintaining sup- “StayWell and MedImpact will “With mail order, you can have for the various NAVFACs around ply of medications needed by health provide the same high quality of your prescriptions delivered right the world. Solicitations forecasted plan members. care that plan members currently to your home and co-payment is by NAVFAC Marianas to be released In StayWell’s case, its members receive, while helping to manage in the second quarter of fiscal 2019 will have wider access to pharma- the increasing costs of prescription SEE STAYWELL ON PAGE 14 include: Andersen Air Force Base Housing Phases 1 and 2 and Bulk Fuel Storage Tanks in Darwin, Australia. The third quarter of fiscal 2019 brings Phase 2 of the Munitions Storage project. Finally, a SATCOM Facility for Andersen is projected for the first quarter of fiscal 2020. Please remember, these are forecasts. Dates and projects are not set in stone and are often changed or cancelled. The Navy also has a Long-Range Acquisition Forecast, available on NAVFAC’s website. This spreadsheet details forecasted projects through 2021. Guam based projects include architectural and engineering services, galley support services, safety and occupational health services, tire/wood collection and disposal services and solid waste management services. Many of these projects are set-aside for certain small business categories. If you are interested in these projects but do not possess the required small business certification, now is the time to get the certification. Another option is to team up with an already certified small business. Many of the most successful businesses in the federal contracting arena are part of a team and they are constantly looking for teaming partners to enhance their capabilities. The future of federal contracting on Guam remains bright. Opportunities abound for locally-based vendors. The best way to get started is to visit the FBO website, fbo.gov. Find a solicitation you are interested in and submit a quote. No matter the outcome, you will gain experience and that will only benefit you the next time. Guam PTAC counselors are familiar with all aspects of federal procurement and can assist you with you any questions as well as obtaining various federal certifications.mbj

— Boris Hertslet is the program manager for the Guam Procurement Technical Assistance Center. He can be reached at [email protected]. Marianas Business Journal www.mbjguam.com January 7, 2019 - January 20, 2019 11

POWERS power of attorney to Alex and left the title insurance policies, the banks title company will consider CONTINUED FROM PAGE 8 United States. The power of attorney did not. it “used” and therefore of no stated that Alex had the authority to In order to protect property own- further effect. This allows the used. Whichever form of power of refinance the house within a period ers, the title and escrow company is owner to approve or deny fu- attorney is contemplated, I cannot of one year. Rather than do one sim- tasked with ensuring a power of at- ture transactions. stress enough that use of a power ple refinance, Alex got creative and torney is being used properly. How While a handy tool in some of attorney should only be done did three refinances all at the same do we do that? cases, a power of attorney can be with the advice and close guidance time, with three different banks and • We require a specific power abused resulting in grave losses. of your attorney or estate planning three different title companies, each of attorney that conforms As a title company, we will do our professional. being unaware of each other. with the transaction being best to mitigate loss or fraud by Examples of powers that can be When the multiple mort- anticipated, naming the questioning the use of a power of granted to an attorney in fact: gages were discovered, and the sale price in the event of a attorney in each closing we han- • Real Estate – To buy, sell, transactions unraveled, Alex had sale and naming the bank dle. If a power of attorney is to be rent, mortgage or otherwise placed debt on the property well and new loan amount in used in your transaction, it is im- manage property. in excess of its value. Additionally, the event of a refinance. We portant to let your escrow officer • Business – To invest, trade he used the power of attorney after also call the owner and con- know up front so they can ensure and manage a business. This it had expired, and to add insult to firm their intent to sell or a smooth experience at the closing can also include handling injury it appeared he had forged the refinance the property and table. mbj claims and lawsuits. signatures of his mother and sister. ensure the sale proceeds are • Finance – To handle bank- First American Title suffered delivered to them. — Kim Anderson Young is the president ing, taxes, insurance policies quite a loss due to Alex’s creativ- • When a power of attorney of Security Title Inc. She can be reached at kim@ and retirement transactions. ity, but because18-FHB-PayrollServices_Nov-Dec_MBJ_7.5"X10"FC_.pdf they had lenders is used1 10/31/18 in a transaction, 7:20 AM the securitytitle.net Might also include living trusts and estate planning. • Family – To buy, sell or trade any personal property, to em- ploy professionals and their services. • General Authority – Generally to act on your behalf as if you were person- ally present. For real estate purposes a power of attorney must be in writing and must have been signed in the pres- ence of a notary public. It should also be noted that no power of at- torney survives the death of the principal. From a title insurance perspec- tive, we prefer the owner of the property sign documents them- selves, but there are times when that is just not possible. One exam- ple is a seller who is in the military and is deployed to a location where they cannot be reached. The service member might choose to grant their spouse or trusted friend the power to act on their behalf. Unfortunately, it is not uncom- mon for an agent to abuse the powers granted them for their own personal gain. Too many times we have seen an attorney in fact using the power of attorney to deed the property to himself or herself and then selling it, taking the sale pro- ceeds for themselves. Choosing an attorney in fact can and should be done with the utmost consideration. Never forget that you are trusting this person with your personal and business property and decisions. While it is the expectation that the agent will be completely honest and to act in the best interest of the principal, that is not always the case. Years ago, First American Title experienced a claim that, when un- raveled, disclosed a serious abuse of a power of attorney. The owners were Korean citizens, a mother and daughter living in Japan. The home they owned in McLean, Va. was oc- cupied by their son/brother, “Alex.” Mom and sister gave a durable 12 January 7, 2019 - January 20, 2019 www.mbjguam.com Marianas Business Journal Legal briefs GRMC, former CEO battle in court Saipan casino construction ment issued in her absence cut that arbitration tribunal which decided Margaret A. Bengzon, former subcontractor sued amount of leave to three years, and in DFS’s favor. The airport authori- CEO, president and board chair- Gold Mantis Construction Kato received notice of the change ty challenged the decision and DFS woman of Guam Healthcare Decoration (CNMI) LLC, one of after her leave had expired. Kato was provided its counterargument, but Development Inc., which operates several companies hired to build still able to return to work but was the case was put on pause as devel- Guam Regional Medical City, is re- Imperial Pacific International’s ca- later terminated after going on med- opments in other cases involving questing from the Superior Court sino on Saipan, is being sued by ical leave a second time for a shorter the dispute between the two parties of Guam a temporary restraining six men claiming to be employees period, and with after-the-fact no- unraveled. Court proceedings on order, preliminary injunction and who were not compensated for nu- tice once again, the lawsuit stated. the case continued this year, with a permanent injunction made merous workplace injuries while Kato’s complaint alluded that Barcinas upholding the arbitration against her prior employer follow- working on the development. United ultimately decided to termi- decision. ing her ousting. The lawsuit filed in the District nate her employment because of Bengzon in her Nov. 29 com- Court for the Northern Mariana her old age and fragile health. She is Solid waste management may stay plaint said an illegal meeting and Islands stated the workers had re- asking the court to order the compa- with feds until March resulting decision made by share- ported their injuries, time off and ny to restitute her in back pay, front Federal receivership of Guam’s holders and the board of directors medical care to Gold Mantis, but pay, damages incurred, attorney’s solid waste management was ex- for GHDI’s Philippine-based the employer failed to address their fees, double damages under the Age pected to end Dec. 31 by federal mother company, Professional grievances. Instead, the company Discrimination in Employment Act court orders, but filed status reports Services Inc., led to her abrupt denied that the workers were its and punitive damages under the from Guam Solid Waste Authority termination, causing harm to employees and refused to take re- Americans with Disabilities Act. and the Guam Environmental her credibility and reputation. sponsibility for them. Workplace Protection Agency indicate a more Bengzon also alleged the sudden injuries described by the workers Court upholds arbitration award in realistic end to the receivership change puts the private hospital include severe burns, bleeding and DFS, GIAA case would be in mid-March. in financial jeopardy. swelling to their arms and legs, ac- Superior Court of Guam Judge District Court of Guam Chief The decision to oust Bengzon cording to the Dec. 17 lawsuit. Arthur R. Barcinas dismissed Judge Frances M. Tydingco- came on the heels of a series of dis- Gold Mantis’ parent company is the Guam International Airport Gatewood on Dec. 20 ordered putes relative to the ownership of based in China. Authority’s motion to vacate an ar- the agencies to provide status re- Professional Services, of which a bitration award that granted DFS ports on the transfer of operations majority of its shares are owned by Ex-United employees accuses Guam LP approximately $1.85 mil- from federal receiver Gershmman, “outside corporations.” These enti- airline of discrimination lion in damages with a 6% pre- and Brickner & Bratton Inc. back to ties sought to elect their own set of Former United Airlines flight at- post-award interest and an addition- GSWA. In response, Guam EPA re- directors and officers for the moth- tendant Susanna Kato on Dec. 21 al $472,993.20 in attorney’s fees and ported that a draft of its review on er company. filed a lawsuit with the District Court costs, according to Barcinas’ Dec. 26 the design documents for Layon GHDI in a Dec. 11 response said of Guam accusing the company of decision and order. Cell 3, requested by the judge, the court should dismiss the com- terminating her employment be- The dispute stems from DFS’ in- is expected to be completed by plaint, arguing that Bengzon “seeks cause of her age and physical illness. itial complaint relative to a breach mid-January. GSWA’s delay is due vast injunctive remedies that would Kato, 62, had been working with of contract on lease agreements to the hiring of a general manager, effectively cripple GRMC based on United since 1978 uninterrupted between the airport authority and which it anticipates will be filled in speculation about the acts of for- until 2013, when she was diagnosed DFS, specifically with the main con- March. So far, the agency has hired eign individuals, foreign companies with a serious medical condition. cession agreement and the “Mama Katherine Kakigi, a former finance and foreign tribunals without actu- She had requested medical leave, Bear” agreement, which required manager at the Department of ally making any underlying claim which at the time amounted to six DFS to maintain a $250,000 surety Administration, as the comptroller for relief.” years. However, a new union agree- bond. The case was designated to an for GSWA. mbj

Insurance broker aims at underserved market BY MEGHAN HICKEY Chiu, president of AB Insurance, Journal staff told the Journal. Chiu is also execu- tive vice president of Tan Holdings and CTSI Logistics; president of Century Century Insurance Co. Ltd., Blue Ray Insurance Co. Petroleum, Cosmos Distributing Co. Ltd. welcomed a Ltd (Guam and Saipan), D&Q Co. new partner to Ltd., Gemkell Corp. and Luen Thai its team as well Fishing Venture Ltd.; vice president as its office in and director of Asia Pacific Hotels late 2017, and Inc. (Guam and Saipan); and chair- together the two man of the board for Asia Pacific companies aim Airlines and Take Care Insurance Co. to reach those Century Insurance works with clients that the Aon PLC as its primary broker, a re- insurance under- Chiu lationship that has been active for writing company almost 15 years (see “Aon inks deal has yet to reach. of the Century Search for under-

AB Insurance is the general writer leads to Tan Holdings” in the Photo by Meghan Hickey agent for Century Insurance and Feb. 21, 2004 issue of the Journal). a wholly owned subsidiary of Tan However, being a large company, Holdings Corp. there are certain businesses and cli- “ABI has come to step in and ents that are less cost effective for take over that portion of the mar- Aon to manage, Chiu said. “ABI will ket that maybe a larger brokerage The AB Insurance office in Century Plaza along Marine Corps Drive is open from 8 a.m. to 5 p.m. SEE INSURANCE ON PAGE 14 firm doesn’t want to handle,” George Monday to Friday. Marianas Business Journal www.mbjguam.com January 7, 2019 - January 20, 2019 13

PIPELINE Both companies in the JV have Bases contract part of Guam CONTINUED FROM PAGE 1 experience with similar projects, to include federal ones. federal work list Nova Group Inc.-Underground The pipeline opened about two Construction Co. Inc. JV of Napa, years later than originally envi- BY MAUREEN N. MARATITA business set-aside. Calif., was awarded an $11.35 mil- sioned in the award. Journal staff Noble Sales exceeded the U.S. lion firm-fixed-price modification Aside from Sasa Valley, the Small Business Administration size under its previously awarded con- Navy also has the Tenjo Vista standard ($7.5 million and a 750-per- tract. The award is for adjustments Underground Fuel Farm in Piti. The famous or infamous Guam son workforce), making it ineligible associated with additional muni- Tristar Terminals Guam Inc. — an Base Operating Support services for the original solicitation. tions and explosives investigations Agility company provides additional contract will be the subject of an- The original request for infor- for the new pipeline, plus pipeline storage for military aviation fuel at other bridge contract. mation for the contract drew three repairs at various locations off base its Agat property. Naval Facilities Engineering responses. on Guam within the “Naval Facilities The U.S. military in Guam re- Command Pacific “will negotiate and The SBA updated its small busi- Engineering Command Marianas ceives its aviation fuel as part of a award a sole source cost-plus-fixed- ness size standards in 2017. They area of responsibility.” Defense Logistics Agency annual fee bridge contract to DZSP 21 LLC,” can be found on sba.gov/size. The U.S. Navy said in its Dec. 27 contract for the Western Pacific the federal government announced; • As the Journal previously re- release the latest work will be per- and the Middle East. Fuel would any comments were due Jan. 4. ported, the pre-solicitation for formed in Piti and the award would be shipped from a center such as The annual size standard for the Mamizu architectural and take the total cumulative contract Singapore, an industry expert said. the contract — which will run from engineering contract has a value to $78.29 million. The next WestPac contract op- March 1 to Feb. 29, 2020 — is $38 bid response date of Jan. 23 to The pipeline system is not only an portunity is due in March according million. NAVFAC Pacific. asset of the U.S. Navy and Andersen, to the DLA. “This extension will provide con- According to the solicitation, but runs through non-military prop- DLA has its own commander in tinuity of mission essential BOS projects include, but are not limited erty on Guam. Guam, Cdr. Bruce Hong of the Navy. services at [Joint Region Marianas] to, primarily new construction of The same joint venture was Agency wide, DLA procures more while the follow-on competitive base development facilities (bach- first awarded the MilCon or mili- than 3 billion U.S. gallons annually procurement is completed,” the gov- elor enlisted quarters, bachelor tary construction pipeline project of aviation fuel and distillate. ernment said. officer quarters, headquarters, fire in 2013, according to Journal files. The U.S. Navy also issued a Re-awarding of the Guam BOS station, police station, dining facil- It was also the subject of a Guam Sources Sought request for heavy contract to DZSP 21 in 2014 was fol- ity, fitness center, school/training, Environmental Protection agency and civil engineering construction lowed by a slew of protests and legal public works/maintenance shop, fine of $99,500 in August, due to late for “oil and gas pipeline and related action in the U.S. Court of Federal military training range and utilities reporting in 2017 of jet fuel oil spills structures construction” at the Tiyan Claims. and supporting infrastructure). in Agana Heights and Harmon. junction in Barrigada. Subscribers can find other exclu- • The 8(a) Multiple Award The original award was a $52.37 That request for proposals sive stories on the BOS contract at Construction Contract or million firm-fixed-price contract for was due Jan. 2 to Naval Facilities mbjguam.com. MACC for various military construction of a new fuel transfer Engineering Command Pacific in In other contracting news: locations in Guam has been pipeline and upgrade of an exist- Hawaii. • A further bridge contract has changed from a pre-solicitation ing fuel transfer pipeline from the The Navy said in its request that been awarded to Noble Sales Co. to a solicitation. Navy’s Sasa Valley Fuel Farm to the intent of the Sources Sought was Inc. for the contractor operated The pre-proposal conference at Andersen Air Force Base. to identify potential 8(a) small busi- civil engineering supply store NAVFAC Marianas and a site visit Work included upgrading a nesses such as those in a Historically at Andersen Air Force Base — “to the seed project location” will be pump house, providing new fuel Underutilized Business Zone (or a Naval Facilities Engineering held on Jan. 15. pumps, providing a new generator HUBZone) — which Guam is — wom- Command Marianas contract. The SBA size standard for bidders building with emergency genera- en-owned or veteran owned that are The bridge contract runs from is $36.5 million, according to the tors, new filter separators, piping capable of performing the work. Jan. 1 to March 31, while a new solicitation. Bids are due Feb. 12 to modifications, upgrades to the elec- No pricing guidance was given contractor is sought for the small NAVFAC Marianas. mbj trical system and more. for that project. mbj

Locally-owned Latte Built gym opens new branch

BY WAYNE CHARGUALAF classes in the new location. Journal staff “If they want, people can work on the machines at the Kagman gym for a certain workout then go The residents of Saipan will soon to the other gym and do the barbell see a new place to get fit, now that class or the CrossFit class,” Cutting locally-owned gym Latte Built is said. “We’re not charging extra for opening a new branch in Kagman. members to be able to use both The new gym will have dif- gyms. The same key that works at ferent offerings than the original the first location will now work at Cutting of Derek Photo courtesy branch, which is located in Oleai. two locations, so we’re adding value The Kagman branch will be a more for everyone’s membership and not traditional gym in that it will fea- upselling anybody.” ture more machines and will be in The Kagman gym is a a sealed, air-conditioned space. The 3,600-square-foot space that was original gym is an open-air ware- renovated at a cost of about $5,000. house and is centered more on Super Typhoon Yutu, however, functional fitness, featuring equip- racked up about $10,000 in damage The Latte Built Kagman branch will feature more machines than the original branch to offer a ment such as a rock-climbing wall, at the Kagman location and about variety of training equipment and methods to its customers. sleds and barbells. The original gym $15,000 at the original gym. also has a number of functional fit- “The storm pushed things back getting shipped to the island.” expanding already,” Cutting said. ness classes and is often utilized by quite a bit,” Cutting said. “We were The decision to open a new “Even before we had the warehouse, CrossFit enthusiasts. Derek Cutting, originally scheduled to open by Nov. branch was prompted by a number we always wanted to do multiple owner of Latte Built, said at this time 1 and we got hit by the storm in late of factors. he doesn’t plan to have as many October. For a while nothing was “My wife and I had talked about SEE GYM ON PAGE 19 14 January 7, 2019 - January 20, 2019 www.mbjguam.com Marianas Business Journal

INSURANCE not being served by Aon and to com- feet of space, while AB Insurance tration allows them to look through CONTINUED FROM PAGE 12 pete with the other brokers that are occupies 2,160 square feet of space. available patient records for informa- out there and — basically — to bring Architects for the new office were tion including allergies and previous take over those accounts,” he said. more business into CIC.” Oscar A. Coloma and Romy Merjilla, medications used. “They have two jobs,” Chiu said. ABI launched at the same time working with JWG Construction LLC, In line with the partnership, “As the general agent they have to it moved into Century Plaza along which was led by project managers StayWell will also be issuing new … go out and get as much business Marine Corps Drive in September Jay Gozum and James Gozum. identification cards to its health plan as possible for Century Insurance, 2017, alongside Century Insurance Total cost of the move and ren- members effective this year. and they’re a broker so they have as it renovated and took over the ovation was in the “low- to mid-six Mack emphasized a time of to represent their clients and try to old United office space. “We basi- figures,” Chiu said. Costs included growth for StayWell, with the com- get them the best deal. … Of course, cally doubled our [office] size and renovation of the space, hiring and pany rebranding and opening a new the long-term goals for ABI is to try added ABI,” Chiu said. Century training of employees, purchasing headquarters in Maite in the previous and reach out to the market that is Insurance occupies 6,480 square of software to issue the policies year, but she said there are concerns and more. brought to her attention regarding ABI works primarily with cli- whether or not health insurance cov- ents for personal home loans, home erage will continue to be affordable property loans and insurance, indi- moving forward. As an industry ex- pert, Mack said she also speculates vidual automobile insurance, etc., what the future has in store, includ- Chiu said. The office is open from 8 ing the possibility of tax increases, a.m. to 5 p.m. Monday to Friday. influences of the Obamacare Act The ABI team of five employees and the government of Guam Health is led by General Manager Steven R. Plan Program, which is restarting its Surban. bidding process after a protest from “It has been a smooth transition,” TakeCare Insurance Co. Chiu said. mbj These are the kinds of concerns people in the industry worry about, Mack said, but her company is pressing on with the hope that any STAYWELL decisions made in the near future CONTINUED FROM PAGE 10 will be to the benefit of those in need Photo by Meghan Hickey of health coverage. waived,” according to a statement “For an industry player to thrive from StayWell. in this environment, it would have to StayWell members can register be efficient and innovative in order on medimpact.com to see a more to keep health insurance premiums comprehensive list of pharmacy affordable. We share our optimism The shared conference room between Century Insurance Co. Ltd. and AB Insurance can easily benefits that come with the new as we welcome the new administra- hold 40-plus people at a time. partnership. For physicians, regis- tion in Adelup,” she said. mbj Marianas Business Journal www.mbjguam.com January 7, 2019 - January 20, 2019 15 Palau president Environmental issues mar mega hotels plan in Palau announces plan to BY BERNADETTE H. CARREON Board found the project to be not on The multimillion project will be retire from politics Palau Correspondent par with environmental policies. located in Aimeliik State and will The EQPB stated that the compose of large hotel complex con- project “involves a substantial sisting of a hotel tower, mountain BY BERNADETTE H. CARREON KOROR, Palau — Despite the de- degradation of environmental villas, bungalows, artificial beach Palau Correspondent cline in tourism in 2018, Palau is quality” and “conflict with Palau’s and a marina. upbeat about growth in 2019, which long-term environmental policies Wyndham Hotel in an earlier will be boosted by construction re- or goals for high-end, environmen- press release said the luxurious hotel lated activities. However, several tally friendly projects which value will be constructed in “an unspoiled KOROR, proposed projects to construct mega quality over quantity.” region, which is home to spectacular Palau — Palau hotel projects are on hold because of The project was instead required natural landscapes, ancient villages President environmental issues. to submit an Environmental Impact and crystal-clear seas teeming with Tommy E. One of the projects that will be Statement to address the “impacts” colorful marine life.” Remengesau delayed is the planned luxury hotel to the environment of the resorts. In its notice of determination, Jr. spent a by Wyndham Hotels & Resorts. The project, backed by Chinese EQPB said the over-the-water bun- three-decade On Nov. 5, a notice of determi- investors, was also heavily endorsed galows construction will affect the long career in nation was sent to John Cheng, by House Speaker Sabino Anastacio environmental-sensitive area, such politics, starting CEO of hotel developer Sea Sky and Senate President Hokkons as the reef area, mangrove swamp, when he was Development Group Inc., that the Baules during the ground-breaking 28 years old as Environmental Quality Protection ceremony in July. SEE ISSUES ON PAGE 16 a senator and a Remengesau two-time elect- ed head of state of the island nation. On Dec. 26 he announced that he will be hanging up his hat and will devote his retire- ment from politics at the end of his second term in 2020 as a fisherman and a farmer. “I am not running for anything 2020; I intend to hang up my hat and be the fisherman I always wanted to be,” Remengesau told reporters. Remengesau said that he will sit out the political life after his term ends in 2020 and vowed to be a pro- ductive citizen of Palau instead. Remenegsau will turn 63 this February and has been in politics since 1984. At the age of 28 years old, Remengesau was elected as a sen- ator and served two terms until 1992. He ran for vice president in 1992 and won, and served until 2000 when he decided to run for president. Remengesau was elect- ed for two terms as president from 2001 to 2008. When his term ended in 2008, he decided to stay in politics by run- ning for a seat in the Senate, which he won. In 2012, Remengesau ran again as president and won. He also won for a second term and his term will end in 2020. Until his term ends, Remengesau urged the leaders of Palau to contin- ue working with him. “For now, for the next three years, I hope we can work as a country, as leaders and get a lot of things done,” Remengesau said. The president is a known advo- cate of environmental protection. Due to his work regarding Palau’s environment, Remengesau re- ceived the Pacific Champion Award in 2013, named United Nations’ Champion of the Earth. The president also is known for his signature policy of declaring 80% of Palau’s waters as a national ma- rine sanctuary which will be closed to commercial fishing by 2020.mbj 16 January 7, 2019 - January 20, 2019 www.mbjguam.com Marianas Business Journal

ISSUES The site covers 45,293 square meters Pacific Resort. jects on the list that did not specify CONTINUED FROM PAGE 15 of land including 125,000 square Since 2013 to November 2018, the cost in projected investment. meters of water rights. EQPB has issued 14 permits for Another mega hotel proposal in fresh water and coastal water. The EQPB also said that the mag- hotels, hostels, bungalows and apar- Palau, the Koror International Hotel The hotel is supposed to be a 593 nitude of the project will also involve telles, with another four applications which said it will invest $52 million resort that includes 132 hotel gues- secondary impacts such as popu- under review and four applications to build 514 rooms, listed under trooms and 400 villas, with some to lation changes or effects on public pending, while others’ applications Pakheng Corp., has also been re- be built over the seas. facilities and increased pressure on are either waiting for environmental quired to conduct an EIS. The project EQPB said it however ap- infrastructure use. assessment approval or environ- would have been built in Malakal. proved a part of the construction of The EIS is a time-consuming and mental impact assessment approval. The hotel’s construction is pend- rooms, which will not impact the expensive process that most appli- In 2018 alone, there were six ing after the EQPB in 2016 has said environment. cants try to avoid. The only hotel new hotel development applications that the project will “conflict with The project is located in that was required to conduct an EIS with potential investments totaling Palau’s long-term policies of growth Ngerchemiangel, Aimeliik State on and was successfully built was Palau close to $190 million. There are pro- and guidelines.” mbj private land and in a marine area.

China Airlines to fly additional flights to Palau

Taiwan’s largest airline, China In November, Palau President speech. attracting more high-spending Airlines, will increase its flights to Tommy E. Remengesau Jr. held his Palau has been gaining interest visitors. Palau to one more direct service, first state visit to Taiwan where from Chinese investors, especial- Earlier Remengesau said that according to the Palau Visitors he urged the Taiwan govern- ly in building accommodations several airlines are vying to fly Authority. But despite the pre- ment to boost business ties and infrastructure. Tourism from to Palau but the only new airline vious promise in 2018 of new tourism with his country to fur- mainland China has also captured that serviced this route is Japan airlines, only China Airlines so far ther strengthen the two nations’ the top tourism market of the Airlines. has announced additional flights “friendship.” country since 2014, accounting In December, Japan Airlines to Palau. In his meeting with Taiwan for at least 50% of arrivals. chartered a flight bringing in 197 Starting Feb. 18, there will be President Tsai Ing-wen, But the recent tourism arriv- passengers. JAL flew to Palau three flights from Taiwan to Koror. Remengesau urged the leader to als for 2018 showed that visitors eight times in 2018. Currently China Airlines flies reg- consider Palau as a tourism hot- from Taiwan are up by 20% com- The Japan arrivals have suf- ularly to Palau two times a week, spot by increasing direct flights pared to 2017. fered a 5% decrease during fiscal on Wednesdays and Saturdays. In from Taipei. Palau received 11,000 tourists 2018. According to PVA, Delta February, China Airlines will also “China Airlines has two di- from Taiwan in 2018. Airlines pull out from Palau has start flying to Palau every Monday, rect flights a week to Palau and Tourism is a critical source of affected the arrivals. adding 158 seats per week. we hope the flight frequency will economic activity in Palau. The In 2018, Palau received 22,416 Palau is one of six Pacific is- increase; Palau should be a tour- tourism industry is experiencing visitors from Japan, a big drop land nations that have diplomatic ist destination for Taiwanese,” a downturn since last year, but the from the 26,031 in 2017. mbj relations with Taiwan. Remengesau said in his earlier government considers it a sign of

Q&A in pointing out areas for improve- A: I am an endurance sport fa- saying, “Stop doing what you’re CONTINUED FROM PAGE 9 ment in corporate governance. natic, so pain and injury are part of doing.” In banking, this principle the experience. As an athlete, the applies. At one point someone will sovereign wealth funds. For more Q: If you had to choose your tendency is to “push on,” further find themselves in a financial bind than 20 years, this organization has number one tip for smart financ- aggravating the injury. For en- and the immediate reaction will been a provider of education, a re- es to share with our readers, what durance junkies, stopping can be be to borrow their way out of the source for best practices and a leader would you say? devastating. But pain is the body problem, in other words, “push on.” My single most important tip is to first, stop doing what you did to get you to this place and instead work within your means to get your- self out. The short-term remedy might be painful, but know that at some point, you’ll be able to pick up where you left off and will be stronger.

Q: Is there anything about your work we didn’t ask about that you feel would interest the business community?

A: To the business community, your banker needs to be your part- ner. We need to approach each other with the goal of mutual success and a sharing of risk. For the institution and the business, the loan closing is the transaction that starts the rela- tionship, it isn’t the end. Taking this longer-term view will help promote a more solid foundation for a better relationship. mbj Marianas Business Journal www.mbjguam.com January 7, 2019 - January 20, 2019 17 Pay-Less has big plans for 2019 BY WAYNE CHARGUALAF “We had a projected date of open- contained. “We’ve had huge growth in that Journal staff ing between March and April but There are a number of chang- area and we’re starting to see that it’s now it’s looking more like May,” Sgro es planned in other areas of the becoming a regular purchase item said. “Like all construction projects company as well. The Pay-Less across the board,” Sgro said. “We’ll Pay-Less there were a few hiccups along the headquarters in Hagåtña will be continue to flag it with our Health Supermarkets way, but now it’s moving along re- expanding, moving the human re- Smart sign but we’re not going to is looking for- ally well and we’re all really excited sources office and training areas segregate it like we have before.” ward to 2019 as about this new store. It’s going to into the space currently occupied Two other areas Pay-Less will a year of growth have all the bells and whistles.” by Nichole’s Boutique right beneath continue to pursue in 2019 are its and expansion, Some of the hiccups were due The Boka Box. commitments to digital marketing according to Pay- to delays in the shipment of metal The company is looking to ex- and sustainability. Less Markets Inc. walls and refrigeration equipment, pand its workforce and footprint “We do a lot of social media and Executive Vice which are expected to arrive in late for frozen warehouse space at the we have a very active website with President and January and March, respectively. Pay-Less Distribution Center. The recipes and cooking options,” Sgro Chairwoman Sgro The décor and layout have been changes are in response to a signif- said. “I’m seeing that area is grow- Katherine C. fine-tuned and will continue to in- icantly increased business volume, ing. The interest, the viewership and Sgro. corporate local themes such as latte which Sgro attributes at least par- people talking about it has spurred a “I’d say 2018 was a year of tran- stones but with a more contempo- tially to the company tapping into lot of interest in the products and the sition,” Sgro told the Journal. “We rary design, Sgro said. institutional lines with hotels, res- movement of products that we ad- think 2019 will be a stronger year.” Other new features of the Maite taurants and mom and pop stores. vertise. There’s a direct correlation.” Dominating the company’s plans branch include a refrigerated section “Our sales have more than dou- The company’s efforts in sustain- for the year is the opening of the Pay- with dry, aged beef; a fresh juicing bled,” Sgro said. “It’s been a real area ability will continue to grow as well, Less Supermarkets Maite branch station next to the produce section; of growth opportunity. That’s been Sgro said. in the former Market Wholesale bulk ingredients with gravity-fed an exciting area and we have a lot “We started the process decades Distributors Inc. warehouse. The dispensers to mitigate the sanitary of new ideas that we want to imple- ago and we vow to be even more branch will become the compa- concerns brought about by the usual ment at PDC.” aggressive with our campaigns, es- ny’s flagship store once it opens for scoop-and-bin configuration; and a Pay-Less Supermarkets will also pecially in light of Sen. Régine Biscoe business in the 45,000-square-foot coffee shop and deli. be changing how it sells natural and Lee’s bill to eventually ban the use building. The Pay-Less location in In response to complaints that organic products, integrating them of plastic bags,” Sgro said. “We have the Agana Shopping Center — which the Hagåtña Pay-Less is too cold, more fully with the other products numerous programs in place that has operated for nearly 40 years — the chill cases in the Maite branch on its shelves rather than keeping will help promote that. We think it’s will close. will have doors to keep the cold air them in a separate section. going to be an exciting 2019.” mbj 2019 a hopeful year for business, tourism

BY JOHN I. BORJA Chamber of “We’re wel- some more than others, but most Journal staff Commerce, said coming more businesses found ways to open and she was thrilled tourists to continue their operations while to hear from her our islands, at the same time renovate and re- Most businesses in the Northern organization airlines are re- pair the damages to their buildings. Mariana Islands are back to normal members that a suming their These businesses also took care of operations, but it’s going to take majority of them flight schedule, their employees, assisting them much of the new year to get the en- have reopened banks resumed with temporary housing, financial tire private sector back up to speed, their businesses normal hours assistance and other resources.” according to industry leaders. and are oper- and our only She added that because of the Palacios Concepcion Velma Ann M. Palacios, direc- ating regularly. movie theater damages sustained from the ty- tor of network operations at IT&E The chamber has has reopened as phoon, the 2018 fourth quarter CNMI and president of the Saipan more than 160 members in the well,” she said. “All businesses were Northern Mariana Islands. impacted by Super Typhoon Yutu, SEE HOPEFUL ON PAGE 19 18 January 7, 2019 - January 20, 2019 www.mbjguam.com Marianas Business Journal Briefcase Photo courtesy of the GuamPhoto Visitors courtesy Bureau Photo by Wayne Chargualaf

(From left) Antonio Muña Jr., vice president; Nico Fujikawa, acting director of tourism re- Maria Claret Mapálad-Ruane (standing), professor of economics at the University of Guam, search; Milton K. Morinaga, managing director, P.H.R. Ken Micronesia and board chairman, all presents the UOG Regional Center for Public Policy’s 2018 Guam Economic Report. The report of the Guam Visitors Bureau;, Raphael Unpingco, son of the late Norbert “Bert” R. Unpingco; showed the island’s economy performed largely as expected, having experiencing growth Pilar Laguaña, director of global marketing, GVB; Virginia Lujan Taitano Unpingco; Gloria between zero and slightly negative — -0.5% — compared to 2017. Other findings include a Unpingco Santiago; and Iowani Unpingco, wife, daughter and grandson of Bert Unpingco, re- near-record low unemployment rate with the caveat that the number of people not participat- spectively; Jon Nathan P. Denight, president and CEO; and Rose Q. Cunliffe, director of finance ing in the labor force is higher and increasing, relatively low inflation, continued low business and administration, both of GVB. spending and a slight increase in federal government contracts on Guam. The effects of the tourism industry’s attempt to adapt to Korea unseating Japan as Guam’s primary market was GVB visitors center renamed in honor of Guam tourism pioneer noted, and the Tax Cuts and Jobs Act of 2017 proved to be a two-edged sword for Guam since the local government scrambled to meet an anticipated $145 million revenue shortfall, while TUMON, Guam — The Guam Visitors Bureau on Dec. 18 renamed its many residents brought home larger paychecks. visitor center the Norbert “Bert” R. Unpingco Visitor Center, according to a Dec. 20 release. Unpingco, who passed away in 2017 at the age of 83, is credited with playing a major role in the development of Guam’s tourism industry starting in the 1970s. He was the first GVB general manager and was known as “Mr. Guam Tourism.” The public law to rename the center was authored by Sen. James V. Espaldon. Photo courtesy of LexusPhoto courtesy

Ships in accidents in region Taiwanese national and 14 per- PITI, Guam — The Japanese sonnel from Myanmar. A South cruise vessel Nippon Maru on Dec. Korean vessel picked up to crew- The UX is the Lexus entry into the crossover SUV market. 30 ran into a United States Navy members. Two Taiwanese coast fuel pier at Apra Harbor, accord- guard frigates were expected to Atkins Kroll debuts Lexus SUV ing to a Dec. 31 release from the reach the area on Jan. 3, according TAMUNING, Guam — Atkins Kroll Inc. on Dec. 22 debuted the new Port Authority of Guam. The ship, to reports. Lexus UX compact sport utility vehicle at the Atkins Kroll Lexus show- which was carrying 524 passen- room in Tamuning. The vehicle is the Lexus entry into the growing gers and a crew of 224, originated Small business advisor named crossover SUV market. from Yokohama, Japan and was en awardee for regional SBDC network route to Saipan when the incident Jane Ray, a occurred. certified small The ship is currently docked at the business ad- other employees from the PISBDCN the office of Gov. Ralph DLG. Torres. Jose D. Leon Guerrero Commercial viser and who were previously named “State About three-quarters of the Port in Piti, Guam. According to the training program Stars,” according to a Jan. 2 release NMI government has already Guam Port’s Harbor Master, the coordinator for from UOG. been funded by existing funding ship is expected to leave Jan. 7. The the Guam Small measures, critical federal services United States Coast Guard is inves- Business MVA temporarily waives tour will remain intact. Social Security, tigating the incident. No passengers Development guide renewal fee Medicare and Medicaid will be or crew were injured. Center at the GARAPAN, Saipan — The unaffected as they fall under The Chinese commercial fish- University of Ray Marianas Visitors Authority will mandatory spending and are not ing vessel Ou Ya Leng No. 6 on Jan. Guam, was waive the $20 fee to renew the cer- affected by the annual appropria- 2 ran aground on Taka Atoll in named the 2018 tified tour guide badge until Jan. tions process. Federal Emergency the Marshall Islands, according to “State Star” by the national SBDC 31, according to a Dec. 21 release. Management Agency operations in a Jan. 3 release from the United organization. She was nominated The decision was made in response response to Super Typhoon Yutu States Coast Guard. A Coast Guard and selected among employees of to the hardships incurred by the and United States Postal Services HC-130 Hercules crew arrived and the six SBDCs under the universi- Northern Mariana Islands tour- will also remain unaffected. The made contact with the crew of 24, ty’s Pacific Islands Small Business ism industry in the wake of Super governor in his release said the who remain aboard the vessel and Development Center Network, Typhoon Yutu. Certified tour guides NMI government will continue to are awaiting rescue. The Marshall which include centers in the must provide a traffic clearance, closely monitor the situation as Islands dispatched a patrol vessel to Northern Mariana Islands, Chuuk, police clearance and proof of eligi- the shutdown continues. respond. Two fishing vessels are en Kosrae, Yap and Palau. bility to work in the NMI to receive route as well and are expected to ar- The award is given every year the waiver. Leon Guerrero-Tenorio name rive Jan. 3. to one employee under each of the senior staff appointments The London, a freighter regis- more than 63 SBDC lead centers NMI to be minimally affected by The transition team of the Leon tered in Palau, capsized near the across the United States and U.S. federal shutdown Guerrero-Tenorio administration middle of the Taiwan Strait on Jan. territories. Ray was presented the GARAPAN, Saipan — The announced between Dec. 27 and 2, causing rescue teams from both award at the America’s SBDC 38th Northern Mariana Islands will be Jan. 3 35 staffing appointments. Taiwan and China to respond. The Annual Fall Conference on Sept. 4 minimally affected by the United For a full list of appointments, freighter was carrying a crew of at the International Spy Museum in States federal government shutdown, visit “Briefcase — Jan. 7, 2019” at 15, which was comprised of one Washington, D.C. She now joins 14 according to a Dec. 23 release from mbjguam.com. mbj Marianas Business Journal www.mbjguam.com January 7, 2019 - January 20, 2019 19

HOPEFUL to normal, specifically with cable CONTINUED FROM PAGE 17 television, home phone and internet services. Between Dec. 21 and Jan. Photo courtesy of Derek Cutting of Derek Photo courtesy economic reports would likely see 6, Docomo conducted service resto- a decrease, “but we expect more ration and damaged line repairs in growth and improvements as we en- Santa Lourdes, Asteo, Capitol Hill ter 2019.” and Mt. Tapochau. Marianas Visitors Authority As for Tinian, “An assessment of Managing Director Christopher repair needs on the island of Tinian A. Concepcion said it’s mainly the have been completed and our teams southern part of Saipan where some will be preparing for the upcom- Latte Built Kagman will feature a 500-square-foot indoor playground. Foam inserts and net- ting will be installed to complete the area. businesses and hotels are still work- ing restoration. While power crews ing on reopening. The central and work diligently to energize the en- GYM people said all they do is barbe- northern parts have been back to tire island with electricity, we will be CONTINUED FROM PAGE 13 cue and drink alcohol all weekend, normal for the past few months now. on standby to deploy our crews who which is not healthy,” Cutting said. “Hotels in southern Saipan are then will restore cable television locations. Tinian was actually “We’re a health-oriented business undergoing repairs and renovations and home internet to your residence going to be my second but now that wants to help our community and we will be back in business as quickly as possible,” according to it’s probably going to be my third make healthier choices.” soon, beginning with the Pacific Docomo. location.” As with the original warehouse Islands Club Saipan which opened Palacios said the restoration of A casual conversation with location, the Kagman branch of today, Dec. 21,” Concepcion said. the business community would not a member at the original gym Latte Built will have a retail space “We are seeing things normalize have been possible without the out- convinced Cutting to take a look at to sell items such as t-shirts, many much faster than what we initially pour of local and federal assistance. the Kagman area. of which are collaborations between expected. The NMI businesses that were able “I looked it up, and right on the the gym and local t-shirt companies Although Tinian bore the brute to reopen earlier were also instru- money, there’s a population of more such as Tribe Marianas, which will force of the typhoon, Concepcion mental in keeping the private sector than 5,000 just here in Kagman,” he be producing a special shirt cele- said tourists are trickling back into afloat during a vulnerable time. said. “It’s just down the street from brating the Kagman branch’s grand the island, along with Rota, as their “Our community has always Capitol Hill, which is kind of the opening. Latte Built is also collab- natural appeal has been restored. pulled together to help everyone ritzy area of the island — and that’s orating with The Game Athletics, With regard to telecommuni- during natural disasters. Most busi- where the money’s at — so if you a Northern Mariana Islands-based cations, most cellular connections nesses took the lessons learned from add all that population, you’re look- athletic clothing company that has have been restored but there is still Typhoon Soudelor, which helped in ing at 6,000 or 7,000 people in this produced uniforms for the NMI na- much to be done for landline repairs the quicker recovery period. We are immediate area.” tional soccer team. and internet connectivity. grateful for the many businesses Another deciding factor is the The Latte Built Kagman branch In a Dec. 27 update, Docomo that opened right after the typhoon lack of recreational opportunities in was expected to hold a soft opening Pacific CNMI management said its to provide the community with the the area. on Jan. 5. The date for the grand open- maintenance crew is still working on much needed food, supplies and ser- “We asked around and a lot of ing is still to be determined. mbj getting islandwide connections back vice,” she said. mbj 20 January 7, 2019 - January 20, 2019 www.mbjguam.com Marianas Business Journal Legislative Roundup Public Law 20-84: Extended five years, based on the agreed option to automatically rezone services through digital or static leases for NMI public lands starting lease amount. their lots to commercial. The law signage in areas that are not on With the intention to improve specifically states that it is not their property. His bill listed certain the local economy and attract new Public Law 34-154: Harmon mandatory for landowners to ad- restrictions, including prohibiting investors to the Northern Mariana Industrial Park Roadway design just and it also does not apply to signs that would be too distracting Islands, senators approved leg- The $4 million rehabilitation Chamorro Land Trust lands that to passing motorists and signs that islation that would increase the and improvement projects for the are on the other side of the road. were positioned any less than 100 public lands lease cap from 25 Harmon Industrial Park is a step If a landowner decides to rezone, feet from the closest point of an years to 40 years and offer an ad- closer to commencement now that there will be a fee of $1,280 that intersection. Additionally, no two ditional 15-year lease extension the government has approved its will go into research and process- signs could be any less than 3,500 afterward. NMI law only allows architectural and engineering de- ing in public record. feet apart. Gov. Edward B. Calvo in NMI natives and their descend- signs. A busy street of more than his veto letter said while he appre- ants to own land, so others outside 36 businesses and more than Public Law 34-166: Sports ciates the idea behind the bill, he of that group lease lands instead. 4,000 workers, the road is notori- complex planned for Talofofo found a critical error in not having The extension does not automat- ous for its uneven paving, potholes The Guam Football Association separate regulations for static and ically affect existing leases, but and broken asphalt. Frank S.N. expressed interest in develop- digital signage, resulting in a mo- there is an exception to leases Shimizu, president of the Harmon ing a recreational sports facility nopoly in favorite of digital signs. involving schools, religious organ- Industrial Park Association, pre- in Talofofo similar to the Dededo izations, hotels and golf courses sented the rehabilitation plan Sports Complex. The southern lot Bill No. 363-34: Qualifying that can opt to upgrade, forgoing to the legislature along with the is 7.7 acres, and this law grants certificate for Core Tech another request for proposal, by design and cost estimates by TG the Talofofo Mayor’s Office and A recommendation screened submitting appraisal reports of Engineers. The scope of the project the Talofofo Municipal Planning by the Guam Economic the property. includes road widening, utility Council the ability to make an ar- Development Authority and adjustments, resurfacing and re- rangement with the association on approved by the 34th Guam Public Law 34-150: GTA 40-year paving and traffic control. the construction of a new facility. Legislature to grant a qualifying land lease GFA will have up to 30 years to certificate to Core Tech Captive GTA initially requested to lease Public Law 34-161: Optional construct and operate the com- Insurance Corp. was vetoed by approximately 23,486 square commercial zoning for Yigo plex, which is poised to encourage the governor, who called it an feet, or half an acre of govern- landowners sports tourism on the island. “illegal bill” because of changes ment of Guam land in Piti for 50 In an effort to bolster Yigo made to the QC at the legislative years to expand and modify its commercial activity in light of The following bills were vetoed by level. Amendments made to the existing cable station. After de- the progressing military build- Gov. Edward B. Calvo. bill changed Core Tech’s tax re- liberation, senators agreed to up projects, Gov. Edward B. Calvo bate benefit from 75% to 100% authorize the Piti Mayor’s Office moved forward a law that will give Bill No. 154-34: Off-premise and added an abatement of 100% to enter into two sets of 20-year Yigo private landowners who hold signage of gross receipts tax, according to lease agreements with the tele- property on the west side of Route Sen. Thomas C. Ada sought Calvo’s veto letter. The bill was communications company, along 1 on a strip starting from Our Lady regulated approval for business- introduced by Sen. Dennis G. with an 8% increase on rent every of Lourdes Catholic Church the es to advertise their products and Rodriguez Jr. mbj Corporate Giving Photo courtesy of GuamPhoto Premier courtesy Outlets Photo courtesy of The Marianas VisitorsPhoto courtesy Authority

(From left) Divina Evaristo, vice chairman; Doris Quichocho, board member; Sallie McDonald, secretary; James McDonald, chairman, all of the Guam Crime Stoppers board of direc- tors; Suzanne Perez, director of marketing and operations, Guam Premier Outlets; Susan Fryer, manager; Mai Perez, marketing manager, both from Tumon Sands Plaza Shopping Toshio Matsumura, former Japanese consul to the NMI. Center; Bingle Pizarro, marketing and social media coordinator, Guam Premier Outlets; Sen. Louise Muña, secretary; and Eric Tydingco, executive director, both with the Make-A-Wish Toshio Matsumura, former Japanese consul to the Northern Foundation board of directors. Mariana Islands donated $1,000 to aid in NMI efforts to recover from The Guam Premier Outlets and Tumon Sands Plaza on Jan. 3 do- Super Typhoon Yutu, according to a Dec. 19 Marianas Visitors Authority nated a total of $12,000 to the Make-A-Wish Foundation and Guam release. Matsumura said he received assistances from a variety of sourc- Crime Stoppers. The two non-profit organizations were beneficiaries es, to include the Matsumoto Yamaga soccer team; Itsuro Hosoada, of the GPO/TSP Celebrity Talent Show Gala held on Nov. 2. Each or- owner of Himawari in Saipan; and Kentaro Imaya of Anaks. ganization received a check for $6,000 during the check presentation Additional Japanese organizations that have raised money for re- at the Tumon Sands Plaza lobby. covery efforts include theTokyo-Koenji Awaodori Association, which raised about $4,000; Skymark Airlines, which raised more than $27,000; and Access Inc., which raised more than $9,000. All funds were donated to the MVA for disbursement to various aid The Hotel Association of the Northern Mariana Islands Chapter, efforts. The MVA is continuing to accept public donations in Japan for Northern Mariana Islands donated according to a Dec. 18 release. $20,000 in holiday meal gift certif- the #MarianasSTRONG recovery campaign. SEE CORPORATE ON PAGE 22 icates to the American Red Cross Marianas Business Journal www.mbjguam.com January 7, 2019 - January 20, 2019 21 22 January 7, 2019 - January 20, 2019 Datawww.mbjguam.com Bank Marianas Business Journal Information you can use to build your business mbjguam.com

Guam Economic Development Authority Qualifying Certificate community cash contributions Performance audit Oct. 1, 2012 to Sept. 30, 2017 QC Required annual Actual amount Actual amount % of Decision No. Industry contribution contributed Allocated to allocated allocation required 1 Domestic insurer $700,000 $700,000 Marketing $700,000 100% GEDA Economic development - 0% Assistance to other agencies - 0% 1 Domestic insurer $25,000 $25,000 Various southern sports team $25,000 100% GEDA 2 Special hotel QC $411,736 $411,736 Economic development $343,118 83% GEDA Higher education and cultural $2,000 0.5% Board preservation Decision Tourism projects, tourist attractions - 0% Unallocated $66,618 16% 3 Agriculture $10,000 $10,000 Marketing $10,000 100% GEDA Assistance to other agencies - 0% 4 Healthcare industry $1,250,000 $1,250,000 Economic development $500,000 40% GEDA Public safety $56,620 5% Board Decision Higher education and cultural $25,000 2% preservation Healthcare - 0% Medicaid - 0% MIP - 0% Unallocated $668,380 53% 5 Domestic insurer $100,000 $71,877 Marketing $71,877 100% GEDA 6 Hotel $100,000 $100,000 Marketing $100,000 100% 6 Hotel $50,000 $50,000 DCA $50,000 100% GEDA 7 Hotel $100,000 $100,000 Marketing $100,000 100% 7 Hotel $100,000 $100,000 GVB $100,000 100% GEDA 8 Captive insurance Redacted Redacted Marketing Redacted 100% 9 Hotel $160,000 $160,000 Economic development $160,000 100% GEDA 10 Affordable housing $100,000 $100,000 Marketing $100,000 100% 10 Affordable housing $50,000 $50,000 GVB $50,000 100% GEDA 11 Hotel $125,000 $125,000 Chamorro village $125,000 100% 12 Executive jet industry Redacted Redacted Marketing Redacted 0% GEDA 13 Captive insurance Redacted Redacted Marketing Redacted 0% 14 Special hotel QC Economic development GEDA Higher education and cultural Board preservation Decision Tourism projects, tourist attractions Total $3,417,912 $3,370,349 $3,370,319 Note: 1. QC no. 8, 12, and 13 - Amounts were redacted because contributions were based on tax. 2. QC no. 12 - QC is being revoked due to non-compliance. 3. QC no. 14 - New QC. Payment of cash contribution not due as of audit cut-off period of Mar 2018. Source: Office of Public Accountability, OPA Report No. 18-08, December 2018

CORPORATE Terrace Café and Isla Café. The gift Realtors donated $10,000 to the Jamaican Grill on Dec. 24 CONTINUED FROM PAGE 20 certificates are valid through Feb. 10. Ayuda Foundation to help with served some “Yah mon, serious on-going relief efforts on Saipan food!” at the Department of Youth T Galleria by DFS Saipan do- and Tinian in the aftermath of Affair’s Youth Correctional The vouchers are being distrib- nated 56 gifts and two Christmas Super Typhoon Yutu. Facility in Mangilao. Owner Frank uted by the American Red Cross trees with decorations to the Kenney, Chef Edinhar Sebastian directly to families they are serving, Kagman Emergency Shelter on The Chinese Chamber of and Dan Huck, relative to Kenney, individuals still living in shelters and Dec. 18. The gifts are for the 56 Commerce Guam raised $5,000 handed out more than 20 meals Karidat Social Services for further children staying at the shelter, and collected 1,000 different kinds to the client’s currently in DYA distribution. The 1,000 vouchers which is currently housing 39 of toys to donate to The Salvation custody and personnel on duty. are worth $20 each and can pur- families. The Kagman Emergency Army Guam Corps Toy N Joy Jamaican grill has served lunch chase a full buffet or a la carte. Shelter Facility is a former juvenile Drive, Harvest House and Feeding every Christmas Eve at DYA for Participating restaurants are World detention center which was turned the Homeless (previously known the past three years. mbj Café, World Café Terrace, MAI into an emergency long-term shel- as Kamalen Karidat). The funds Teppanyaki, Tasty Burger, Dolphin ter for those displaced by Super and toys were collected during the Restaurant, Kili Café & Terrace, The Typhoon Yutu in October. chamber’s annual Simultaneous Grill, Magellan’s, The Galley, Costa The Guam Association of Fund Drive. Marianas Business Journal www.mbjguam.com January 7, 2019 - January 20, 2019 23 Data Bank Information you can use to build your business mbjguam.com

Breakdown of GEDA revenue from fiscal 2013 to fiscal 2017 Revenues 2013 2014 2015 2016 2017 Total % Rental income $1,182,977 $1,080,091 $1,106,981 $1,183,006 $1,171,329 $5,724,384 42% Qualifying $401,463 $448,415 $342,187 $873,765 $646,910 $2,712,740 20% certifticates Bond fees $1,386,626 $576,460 $722,744 $927,877 $249,378 $3,863,085 29% GALC lease $94,545 $89,089 $89,534 $80,221 $105,278 $458,667 3% PUBLISHER commission Maureen N. Maratita Grants $222,599 $22,701 $3,677 $1,591 $ - $250,568 2% revenue BUSINESS EDITOR Meghan Hickey Others $ - $ - $ - $ - $469,175 $469,175 3% Total revenue $3,288,210 $2,216,756 $2,265,123 $3,066,460 $2,642,070 $13,478,619 100% REPORTERS John I. Borja Breakdown of qualifying certificate revenue Wayne Chargualaf Qualifying certificate revenues 2013 2014 2015 2016 2017 Total JAPAN CORRESPONDENT Surveillance $123,165 $187,665 $166,437 $161,165 $158,285 $796,717 Julian Ryall Application $3,000 $576,460 $722,744 $927,877 $249,378 $27,600 MARSHALL ISLANDS CORRESPONDENT Economic development - $200,000 $200,000 $100,000 $624,500 $418,625 $1,543,125 Giff Johnson Community contributions Marketing - Community $75,298 $60,000 $60,000 $80,000 $70,000 $345,298 PALAU CORRESPONDENT contributions Bernadette H. Carreon Total QCs $401,463 $448,415 $342,187 $873,765 $646,910 $2,712,740 CREATIVE DEPARTMENT SUPERVISOR Vikki Fong Guam U.S. Small Business DESIGN & PRODUCTION $3.4M in community cash contribuon by source Administration loans approaved for Conrad Calma Typhoon Mangkhut as of Dec. 27 Keisha Marie Gozum Execuve jet industry; Agriculture; Applications Loans Dollars Luisa Joy Castro $2,687 ; 0% $10,000 ; 0.2% approved approved Home 2 $84,300 GENERAL SALES MANAGER Ken Duenas Business/EIDL 0 $0 Domesc insurer; TOTAL 2 $84,300 PRODUCT REPRESENTATIVE $825,000 ; 24% Healthcare services; Source: U.S. Small Businesss Administration, Office of Vince Guerrero Disaster Assistance, Field Operations Center - West Troy A. White $1,250,000 ; 37% ADMINISTRATION FOR ADVERTISING Janice Castro AND SPACE Carmelita McClellan RESERVATION Jenalyn Aguon Special hotel QC; $411,736; 12% Call MANAGING DIRECTOR TROY A. WHITE Marcos W. Fong Capve insurance; (671) 649-0883 Redacted; 4% email: Affordable housing; Hotel; [email protected] $150,000; 4% $635,000; 19%

Marianas Business Journal, Volume 16, Number 18 — January Source: Office of Public Accountability, OPA Report No. 18-08, December 2018 7, 2019. Entire contents copyrighted 2019 by Glimpses of Guam Inc. Marianas Business Journal is published biweekly by Glimpses of Guam Inc. 161 US Army Juan C. Fejeran St., Barrigada Heights, Guam 96913. (671) 649-0883; Fax (671) 649-8883. POSTMASTER: Send address changes to Marianas Business Journal, P.O. Box 3191, Hagåtña, Guam 96932. Send e-mail to glimpses@glimpsesofguam. com. All rights reserved. Subscriptions, 6 months $60 1 year $120. Payment must accompany order. No material may be printed in part or in whole without written permission from the publisher. Printed by Guam Daily Post LLC, on Guam, contact Marianas Business Journal at Glimpses of Saipan Inc., 2nd Floor Transpac Business Center, Middle Road, Gualo Rai, Saipan, MP 96950, or call (670) 235-7645; Fax (670) 234-1801. Send e-mail to subscriptions@ glimpsesofguam.com.

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