Shotgun Start by MEGHAN HICKEY PLAIN ENGLISH

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I do — or not Businesses rethink wedding offerings

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C MBJ Front Top Banner_FHP.pdf 2 1/16/19 11:01 AM

CM MY Building the illusion From north to south CY Guam magic industry shows Alaskan company sets up shop on Guam CMY Volume 16 No. 20 www.mbjguam.com February 4, 2019 - February 17, 2019 strength K t INDEX Shotgun start BY MEGHAN HICKEY PLAIN ENGLISH...... 2 Journal staff RFP kicks off new Simon Sanchez procurement process JAPAN...... 4 EDITORIAL...... 8 The magic industry on Guam is BY WAYNE CHARGUALAF Fernandez, Guam OPINION...... 8 thriving and is here to stay, largely Journal staff Department of in part due to location and friendly COMMENTARY...... 9 Education super- competition. EDITORIAL CARTOONS...... 8, 9 The Guam Department ofintendent, told “Magic is big right now. … It’s big the Journal. QUOTABLE...... 9 Education on Nov. 21 issued a re- and I see a big upswing, and it’s go- The plan — MARSHALL ISLANDS...... 11 quest for proposal to survey land ing to stay for a while,” Chris Zubrick, upon which to build a new Simon which calls for a co-illusionist and magician of the PALAU...... 14, 15, 24 Sanchez High School. The RFP — completely new Baldyga Groups’ Zubrick Magic per- LEGAL BRIEFS...... 15 which had a deadline of Jan. 7 and structure to be formed at the Sandcastle Guam, told built, rather than CORPORATE GIVING...... 17 for which GDOE received three un- the Journal. “It goes in ebbs and flows renovation of the FOCUS...... 20, 21 disclosed proposals — is the first step Fernandez … [but] I don’t see it slowing down in a procurement process that was existing structure any time soon, and Guam’s a per- BRIEFCASE...... 22 revamped to improve the process — is divided into fect example with four magic shows DATABANK...... 29, 30, 31 of giving Simon Sanchez students a three phases. The first phase involves here,” he said. new home. building a new school next to the cur- Much like Colon, Michigan — the “Our strategy is to break this rent structure, the existing structure magic capital of the world — and up into digestible pieces,” Jon SEE PROCESS ON PAGE 13 Las Vegas, Nev.; Branson, Miss.; and Pigeon Forge and Gatlinburg, Tenn., A cold wind blowing Guam has become a destination for magic, with Zubrick Magic at the Sandcastle Guam, Encore! at the PERMIT NO. 76 PERMIT NO. U.S. POSTAGE PAID POSTAGE U.S.

USPS MARKETING MAIL USPS MARKETING Fiesta Resort Guam, Magic Rocks at BARRIGADA, GUAM 96921 GUAM BARRIGADA, the Westin Resort Guam and Carme Magic Dinner Show at the Nikko Resort Guam all seeing successful numbers, despite a changing tourism market. “These places have become magic meccas, just magic all over the place. And now Guam, per capita, has become its own little magic mecca,”

Photo by Meghan Hickey Zubrick said. “It’s tough competition.” What’s unique about Guam, not

LABEL unlike other industries, is tourism —

SUBSCRIBE but Asian tourism to be exact, said Ryan Zubrick, co-illusionist and magician in Zubrick Magic, and husband

PUT YOUR NAME HERE — HERE NAME YOUR PUT Construction is progressing at the site of a new 1,080-square-foot showroom for Chinese air conditioner of Chris. and appliance brand Midea on Chalan San Antonio next to Elite Bakery. Construction Lead Boy Conanon of “It’s completely different than GR Construction LLC, the local company contracted for the construction, told the Journal on Feb. 1 that they received the permit for the work in September, but work had a slow start after the Aug. 3 groundbreaking due to rain and multiple change orders. The expected completion date will likely be extended past the initial April SEE MAGIC ON PAGE 25 timeframe anticipated, he said. Conanon has a team of 17 personnel working on the construction of the site. 2 February 4, 2019 - February 17, 2019 www.mbjguam.com Marianas Business Journal

What’s in a name, when’s Don Quijote coming and where is our labor coming from

For those of you that have in that mar- wave goodbye to a regular source better into a headline than the pangs of nostalgia for the politi- ket for the of labor for our islands. Apparently alternative. cally incorrect jokes of the late Al greater good nobody thought to pick up the And recently there have been Ysrael — which he would mail out is clearly an phone or shoot an email out to plenty of opportunities for media to his contact list — help is at hand. undeniable warn our governments on the lat- organizations to use the two words: Sign up for the Manta Ray Bay focus for est blow to our economy. that the U.S. government shut- Resort newsletters and look for many of our We are indeed the “red-head- down would affect their issuance, what the newsletter features as its readers (and ed step-child” of the American that the Trump administration “Parting Shot” item — yes, jokes. me). … Family. … was considering restricting the As to the content, Al could not do program to a food box alternative better (or worse). … If there is PLAIN If the governor is half as effec- and that the U.K. was considering a second is- ENGLISH tive at bettering our labor situation introducing them (as opposed to Thank you to everybody who sue besides as she hopes to be, she’ll contin- cash payments) and handing their contacted us about the story of the retail addi- Maureen N. Maratita ue to get standing ovations at the administration to local govern- entry of the Don Quijote chain to tions that has Guam Chamber. … ments. … the Guam market (or stopped me preoccupied at an event to ask “when.”) We’ll our government, businesses and It is virtually impossible to rid I could not find a better alter- certainly be bringing you more its executives in recent days — and a term from the common English native to “food stamps” or “SNAP,” Don Quijote news as soon as we had them howling, it is the with- language once it has taken hold. though maybe “red stamps” would can. drawal of the Philippines from the More than ten years after the be cheerier. … The Don Quijote name is appar- non-immigrant worker program. U.S. Department of Agriculture ently familiar to a number of our That affects not only our con- declared that the food stamp — Maureen N. Maratita is the publisher at readers that travel to Hawaii and struction industry, but has a program was to be known as Glimpses Media. Publications at Glimpses Media Japan — and shop while they are trickle-down effect on all of us. … the Supplemental Nutrition include the Marianas Business Journal, MBJ Life, in those destinations. Assistance Program, the term The Real Estate Journal, Guam Business Magazine, There is also nothing like a new The federal government is such “food stamps” is alive and well Beach Road Magazine, Buenas and Drive Guam. entry — and a famous name at a mammoth and also so divided — sometimes with SNAP in full, that — to get people musing about into departments that our govern- followed by “formerly known as what else they would like to see ments in the Marianas received the Food Stamp Program.” … on-island. … the news at the same time as the rest of us — through an entry in the Part of the reason can be laid at Retail therapy and investment Federal Register that said we can our door. “Food stamps” fits much

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BY JOHN I. BORJA states of Palau. The clubs raised Journal staff money to contribute to the center, but the association also received financial support from the Palau After more government and other civic organ- than 20 years izations on Guam. of not having There are currently two abai, an established also in Dededo, that are large- of the governmentPhoto courtesy of Palau center for ly used for social gatherings its meet- and meeting places. The abai ings, events are owned by the Peleliu Club and activi- of Guam and the Asahi Club of ties, the Palau Guam, which comprises three Community state clubs. Though these abai are Association of generally used by fellow Palauans Guam is set to April and Chamorros, April said the open its brand- Palauan association felt the need new Palauan Cultural Center this SEE CENTER ON PAGE 7 A rendering of the Palauan Cultural Center in Dededo was displayed during a groundbreaking summer. ceremony in July 2017. The association, with support from the Palau government, broke ground on the Lada, Dededo development in July 2017. The center’s main construction is expected to be finished in April and interior work and aesthetic touches will Catherine San Nicolas carry on until June. POSITION: Customer Service Representative “The initial plan for the center was almost half a million dollars,” LOCATION: Asan, Guam said Victoriano April, Palau con- DATE HIRED: June 14, 2010 sul general and board member of NOTES: Strong customer relationship builder. Advanced the association. “We spoke with SCUBA diver with the Micronesia Diving Association, with our architect and we cut out some more than 100 dives logged. Makes killer pistachio cupcakes. things that we’ll volunteer to do ourselves, so the price dropped to about $300,000.” Both the architect and engineer are from Palau and JMC Construction was contracted to build the center, April said. The association was able to use the land on a lease through its membership with the Federation of Asian and Pacific People on Guam, which received authority by the Chamorro Land Trust on several land lots in the area northwest of Wettengel Elementary School. The Palauan Cultural Center will have a large open-space pa- vilion, or abai, of approximately 2,100 square feet and another building for a conference room, office space and restroom facilities, with a floor size of 1,320 square feet. April said he hopes the center will be of great use, especially when educating the local community about Palauan culture. “It’s going to be used in many ways, not just for Palauans but for other Micronesian island groups. We’re looking at finding people who are knowledgeable of Palauan cultures and customs so they can teach Palauans here who may not know much about their homeland. Lessons on fishing traps, weaving, even the language — they can all happen there,” April said. Matson’s people are more than Guam shipping experts. They are The Palau Community part of what makes our community unique. Visit Matson.com Association of Guam is made up of 16 clubs corresponding to the

MATS-34151-R1 MBJ 6-875x9-Catherine-MECH.indd 1 5/22/18 12:02 PM Job Name: MATS-34151-R1 MBJ 6-875x9-Catherine-MECH Size/color: 6.875” x 9” non-bleed; 4C Publication: Marianas Business Journal Pub Dates: 6/11/18 4 February 4, 2019 - February 17, 2019 www.mbjguam.com Marianas Business Journal Ambassador poses plans for Japan-Palau relations

BY JULIAN RYALL “There are a number of compa- island and would provide employ- while Kobe is a relatively small city, Japan Correspondent nies in Japan that are interested in ment and economic opportunities it is very close to the huge urban investing in Palau and building on for local people, Kiyokawa said. area of greater Osaka, which can be the relationship and it was very im- A corporate adviser to electrical a good source of travellers. TOKYO — A Japanese busi- portant that they visited with me to services company Hokuto Tsushin As well as promoting Palau’s nessman who has also been see the country and meet the right Kensetsu Co., based in the central tourism strategy, Kiyokawa is appointed Japan’s “goodwill am- people,” he said. Japan city of Ichinomiya, Kiyokawa charged with increasing un- bassador” representing Palau has “We held talks with local busi- is particular enthusiastic about a derstanding of Palau’s Marine said he is committed to building nesspeople about the possibility plan to launch flights between Kobe Sanctuary initiatives and encour- a stronger and closer partnership of working together on a number and Palau. aging trade and cultural exchanges between the two nations, with a of projects that we believe might “I am very hopeful that this between the two nations. special emphasis on boosting the work,” he said. can happen because it is still quite In addition to meeting local islands’ inbound travel industry Those projects include the expensive for travellers to get to business leaders, Kiyokawa and his from Japan. potential opening of a 24-hour con- Palau,” he said. “We hope to be able delegation paid a courtesy visit on Shiro Kiyokawa was invited to venience store, the local equivalent to start direct flights from Kobe Remengesau at his office in Koror. return to Palau in December by of the 100 yen stores that are so Airport to Palau, we hope to be able The president used the occasion President Tommy E. Remengesau popular in Japan for cheap, every- to bring down the price of flights to express his gratitude for all the Jr., he told the Journal, and spent day household items, and a bureau and we are in talks with Skymark hard work that Kiyokawa — whom one week travelling around the for exchanging foreign currency. Airlines about commencing this he appointed to the post of good- country with a delegation of busi- All three projects would appeal service.” will ambassador in February 2018 ness leaders from Japan. to Japanese travelers visiting the Kiyokawa emphasized that — has achieved in a short space of time. mbj

Strained relations escalate between Tokya, Seoul

BY JULIAN RYALL Japan Correspondent

TOKYO — The head of U.S. Naval Operations has called on Tokyo and Seoul to make efforts to rebuild their strained bilateral relations, a request that hints at growing frustration in Washington at the actions of its two most important security allies in the region. Admiral John Richardson, who made the comments during a visit to Japan on Jan. 18, said, “We continue to encourage all parties to work together” in order to solve any disputes. The two governments should ar- range discussions in order “to promote long-term healing and reconciliation,” Richardson said, and should take place in “an atmosphere of mutual trust so that we could have long-term benefit.” The United States has become increasingly concerned at bilateral ties that have steadily worsened since Moon Jae-in was sworn in as the South Korean president in May 2017. The Japanese government, under Prime Minister Shinzo Abe, considers Moon to be pursuing a policy of ap- peasement towards North Korea that serves to endanger Japan’s security. Tokyo has also condemned as historical revisionism a number of decisions by the South Korean government and the nation’s courts. Moon last year unilaterally can- celled an agreement reached between the two governments in 2016 that

SEE STRAINED ON PAGE 5 Marianas Business Journal www.mbjguam.com February 4, 2019 - February 17, 2019 5

STRAINED The crew of a Japanese reconnais- Executive launches local gift business CONTINUED FROM PAGE 4 sance aircraft claimed that a South Korean warship locked its fire control BY MAUREEN N. MARATITA Hermosa remembers the boost he re- was designed to draw a line under the radar onto the plane while it was on Journal staff ceived while serving on active service issue of “comfort women,” the civilian patrol in the Sea of Japan. The South overseas in the Marine Corps and be- women forced to serve in front-line Korean military has disputed that al- ing able to open mail and parcels. brothels for the Japanese military in legation, insisting that it was helping a It’s an en- He said, “Why not do it for our the early decades of the last century. North Korean fishing vessel that was in trepreneurial folks who want to send the touch Tokyo has also been angered by distress and that it did not use its fire story — a busi- and love of Guam?” rulings by Korean courts that former control radar at any point. Seoul sub- nessperson sees Specially designed boxes will wartime forced laborers can claim sequently claimed that the Japanese an opportunity feature the Guam Gift Baskets logo, compensation from Japanese com- aircraft descended to a low and unsafe and launches a freshened by Hermosa and Ed Gaza, panies. Japan insists that all claims level during the standoff. business to meet co-owner of Opake. The packaging for compensation were settled by the That row has rumbled on in the a gap in the range with logos will include bags, 1965 treaty that normalized relations intervening weeks, with both sides market. tape and shipping envelopes. Boxes between the two nations. releasing video and audio files to sup- T h a t ’ s presently are planned for two sizes: And while differing interpre- port their case. how Charlie 10 inches by 11 inches by 3 inch- tations of history have led to a rift Given the unpredictability of the Hermosa, gen- Hermosa es and 11 inches by 12 inches by 4 between the two governments, the North Korean regime and the growing eral manager of inches. “It will create the brand to United States will be most concerned military and economic might of China, APL for Guam where people recognize the logo,” at the ongoing row between the na- Washington is hopeful that South and Micronesia, came to enter the Hermosa said. tions’ militaries after an incident in Korea and Japan will be willing to put retail business. waters between Japan and the Korean their differences behind them in the SEE BAG ON PAGE 24 Hermosa spotted the website Peninsula in December. interests of regional security. mbj of Guam Gift Baskets. “I actually came across it,” he told the Journal. “It closed in 2016, but it was a storefront.” The business was founded by Denise Mendiola and Pearla Cordero, who were agreeable to passing it to Hermosa. “It was basically pretty much taking over the name. The model I wanted to follow was more of an e-commerce one,” he said. The business will target online sales, he said, though he may accommodate special requests. Other plans include a “fulfillment center” where design, creation, packaging and shipping will take place. Start-up costs are personally funded, Hermosa said. He has specific aims and a philosophy in mind for Guam Gift Baskets. “The primary focus of the company is going to be items made on Guam, or items from companies that are from Guam and distribute on Guam,” he said. Packages — baskets and specially designed boxes — will be pre-loaded at the onset. “As the business continues to grow we’ll create more a la carte items,” Hermosa said. Planning includes special occasion gifts, such as a baby basket, but Hermosa aims to fulfill a need for personal gift-giving. “We’ve gotten away from that ‘touch and feel’ — the ability to give somebody something great,” he said. Though he’s enjoying the process of preparing to open, the business also has strong personal associa- tions for Hermosa. “To me Guam is the most special place in the world.” His aim is now to share a sense of that through Guam Gift Baskets. The company’s motto is “Made with love” and will feature a card with the initials of its assembler inside. Guam Gift Baskets will offer a special box for residents who want to send a taste of home off-island, particularly to service personnel. 6 February 4, 2019 - February 17, 2019 www.mbjguam.com Marianas Business Journal H-2 visa ban on Philippines prompts action from local leaders

BY JOHN I. BORJA of the island’s needs more funding to continue any issues and concerns that USCIS Journal staff foreign labor H-2B visa court case” in the Jan. may have with the functioning non- workforce. 21, 2019 issue of the Journal.) immigrant programs on Guam. We The ban has Mark J. Mamczarz, vice believe in our partnership with the The federal ban on temporary not yet made president of finance of Black Guam Department of Labor and foreign skilled workers from the a big impact, Construction Corp. and chairman that the program on Guam has Philippines has not made a direct but that’s of the GCA board of directors, stricter controls than the program impact on Guam just yet, but mainly because told the Journal that although the has managed in the U.S. Congress,” employers anticipate the effect the island is association is already occupied he said. will likely worsen the island’s already facing with the lawsuit, it is working Homeland Security’s ongoing labor crisis. a labor crisis, with federal authorities to reach reasoning for the ban on Mamczarz Following the Jan. 18 notice by specifically for resolution on this recent blow to Philippine workers was that it the U.S. Department of Homeland civilian-related the workforce. found that nearly 40% of H-2B Security on H-2A and H-2B visa projects. The Guam Contractors “We have continued concerns visa holders from the country eligibility, leaders in the public Association and 11 businesses regarding the issues with the H-2 overstayed their work period. and private sector requested that are currently battling the federal program. We are working with all A high volume of trafficking the federal department exempt government in court regarding parties including [Michael F.Q. victims stemming from the visas Guam from the ban, as Philippine the drastic increase in visa San Nicolas, Guam’s delegate to also drew concerns. But the local nationals make up the majority denials in recent years. (See “GCA Congress] to identify and resolve Department of Labor has argued that Guam’s statistics of overstays are minimal and nowhere near the overall numbers. Gov. Lourdes A. Leon Guerrero announced that she intends to bring the matter up with Homeland Security Secretary Kirstjen M. Nielsen when she visits Washington, D.C. at the end of February. (See “Quotable” on Page 9.) Northern Mariana Islands Gov. Ralph DLG. Torres also is taking action. “The Philippines is the closest country to our islands, and it has been our primary source of labor for decades. There is no doubting the contributions of our Filipino community, and we will continue our efforts to emphasize our need for laborers in order to continue our progress,” Torres said in a statement. The Philippines ban won’t impact all projects, however. Certain approvals by the U.S. Customs and Immigration Service can be done “as a matter of discretion and on a case-by-case basis,” according to the notice. An example provided includes projects relative to the National Defense Authorization Act for fiscal 2019. This means military buildup projects will likely continue to have workers from the Philippines, although Mamczarz said this will require additional pages to the petitioning process to verify eligibility. He also said civilian projects shouldn’t be left out. “Although GCA established the Trades Academy more than 10 years ago to address this issue, the local workforce will not be capable of performing the military relocation work. The non-military activities on Guam need to be able to grow hand-in-hand with the buildup if this relocation will be successful in the long run,” he said. mbj Marianas Business Journal www.mbjguam.com February 4, 2019 - February 17, 2019 7

CENTER Triple J follows advancing purchaser trends; launches online shopper CONTINUED FROM PAGE 3

BY MEGHAN HICKEY to have its own space to serve a wider group of people. Journal staff The last time the Palauan Community Association of Guam Triple J had an established meeting place Enterprises of its own was in 1997. With ap- Inc. during the proval by then-Gov. Ricardo J. week of Jan. Bordallo and no push-back from 21 officially the military, the association was launched its new Photo sourced from triplejguam.com able to utilize an abandoned Online Shopper Quonset hut along the Harmon feature on cliff line for its activities. However, triplejguam.com once the military returned excess with which land to the government of Guam, customers can the association had to leave the Jones accomplish the premises. Until now, there hadn’t entire buying been any other buildings the asso- process online from initial interest ciation congregated in. mbj to delivery. Triple J launched the week of Jan. 21 its Online Shopper feature offering its full purchase experience online. “Our model is customer service, and this is something that customers are increasingly gravitating toward — being able to accomplish more and more of the buying process online from their home or office,” Jay B. Jones, senior vice president of Triple J, told the Journal. “We’re buying everything else online, so it’s a natural progression.” Jones said that the company was finding that more and more of its customers were communicating and interacting with sales representatives and employees online, and so the company wanted to continue to allow them to do that to whatever extend that they preferred. He said that this trend is one that mirrors a national industry shift, in which most buyers on average visit less than two dealerships before they make a purchase — whereas in the past a buyer typically would visit almost every dealership in the vicinity before making the purchase decision. “Most customers have made up their mind about what they want and what they’re going to buy before they’ve even left home,” Jones said. “That’s the future of the industry. You can do so much of the research online that it doesn’t really make sense to burn gas and vacation days, or whatever, to go to every dealer.” The trend isn’t generational either, and seems to span every demographic age, as all generations are online and seem to be using the internet in the same way to make these types of decisions, he said. Even test driving has gone by the wayside, with only approximately 20% of people nationally test-driving cars before purchase, he said. “It’s something that’s total counter intuitive to something that this industry has said over the years, but it’s our experience as well,” he said. For the most part, customers trust that in this age of technology a car will drive how it’s supposed

SEE ONLINE ON PAGE 11 8 February 4, 2019 - February 17, 2019 www.mbjguam.com Marianas Business Journal Editorial Opinion The value of Adequately insuring the title to your property BY KIM ANDERSON YOUNG title insurance The lenders policy insures only relations policies. the lender. Let’s say you purchased The lenders a property and only insured the loan A friend stopped by my office policy insures (as required by the Federal Deposit For media on Guam, January has yesterday to discuss a few title the bank, so Insurance Corp.) and declined to been a month of transition as the issues that we had recently that their purchase an owner’s title insurance new administration is named and discovered and during the course loan is in first policy. In the event there was a claim settles in — not only because there of our discussion, he asked a very lien position against the title to your property, the seems to have been an exodus good question — one that most of against the title company would have the right of fellow journalists who have us (including me) forget to address property and to pay off your loan to ensure that taken the call to service to our as we go about our daily life. in the event the lender did not experience a loss. government, but also because our His question was, “If I purchase the lender Young Without an owner’s title insurance long lists of contacts for senators, land for $50,000 and buy title forecloses, policy, you would stand to lose your agencies and departments insurance at closing, what happens there are no down payment and the cost of any are quickly stripped away and if I build a house on the property, is taxes, other liens, leases or any improvements you had made to the started anew. Gone are the quick that insured as well?” Spoiler alert… other person that has a senior property. phone calls to cell phones and unless you endorse to increase the claim to the property. The lenders An owner’s policy insures only the friendly voices who know what coverage of your title insurance policy insures the lender for the owner. There is a one-time premium you’re calling about before they policy, the answer is no. full loan amount and as the loan when you purchase the property and even pick up the phone, and Let me share a little background is paid down, the lenders coverage when the policy is issued it remains hesitantly welcomed are the email on title insurance policies, as well as decreases in proportion with the in effect for the entire time you introductions or “hello old pal” a horror story. There are two types amount owed. Once the loan is paid own the property. The value does calls to hopefully start out on the of title insurance policies: owners in full, the lenders coverage is no right foot in establishing those title insurance policies and lenders longer in effect. SEE TITLE ON PAGE 10 helpful relationships now, should we have to quickly call upon them later. The process (which seems Warhol’s curse becomes reality like too cold a word to use in this delicate time), highlights the importance of relations — a BY RON MCNINCH Business a New Jersey nurse named Norma theme also brought to light in communi- Rodgers took a video of an angry multiple other stories in this issue ties should woman next to her on the flight of the Journal. Across almost be aware of as it was boarding. Rodgers and In the late 1960’s Andy Warhol every industry you can hear how this social her friend “Mac,” both of whom fit claimed that in the future, every- relations with others both locally media-news the category of “persons of size” one would get “fifteen minutes” and nationally/internationally effect because had reserved the aisle and window of fame. Due to the internet, this have served them well… or not. these types seats, leaving the middle seat open. might be becoming true and in a Both realtors and magicians boast of contrived The woman assigned to the middle way, I am not sure whether this is that focusing on building strong spectacles can seat began complaining on her cell such a good thing. relationships before and above damage rep- phone to her friend about the sit- For about five years under Gov. McNinch making money has been beneficial utations. The uation and words were exchanged. Camacho and Gov. Calvo, I was both for their businesses and Covington, Ultimately, the woman was moved pro bono director of the Guam Dr. their income. Governments in the Kentucky and later was taken off the plane. Martin Luther King Commission on Marshalls Islands, Palau and Japan Catholic School case is an excel- This was depicted as a scenario of Civil Rights. During the 2019 MLK are all working not only together, lent example of the forces at play “fat shaming” by viral social media, Weekend festivities in Washington but also with their private sectors in our modern media age. but there seems to be a lot more to D.C., a widely reported racist en- to come to arrangements that There have been a number of this story. Leaving the middle seat counter was portrayed to the world. work for the better of everyone in viral videos of people acting up on open was simply asking for trouble I call this sort of melded social me- their locales. airline flights. While the video of or perhaps just a method to get ex- dia and news behavior, “the curse of On Guam, there are those the doctor getting dragged off the tra free seat space on the flight. Andy Warhol.” Just because some- who see the importance of that plane made a major splash in the Speaking of airlines and reg- one shows a picture, video or tweets relationship, and the special media, there are quite a number of ulation nightmares, there is a something, doesn’t mean that reali- opportunities that our culture’s videos online that show how out of movement for people to bring a ty has been accurately represented. family and community-based control and rude people are when wide range of assorted animals When news sources repeat and val- focus offers — and are working to they travel. This becomes good on flights claiming some sort of idate social media without this type share that with others (see Page 5). fodder for people making videos, disability related purpose. I have of context, bad things can happen. Yet when we’re not careful — or we and quite often these videos are no issue with trained working Luckily at the D.C. event, there was get complacent — and haven’t done taken as selfies. On a United Jan. a lot of video that placed the inci- enough to build that relationship… 2 flight from Las Vegas to Newark, SEE WARHOL ON PAGE 15 dent in a proper context. well, see Page 6. In a high-tech world where communication is constantly at the tip of our fingertips, it’s more important than ever to learn how to communicate with others to build and nurture the types of relationships that will help move our communities and economies forward. mbj Marianas Business Journal www.mbjguam.com February 4, 2019 - February 17, 2019 9 Commentary

Quotable

“The nearly-100% denial rate of H-2 applications to Guam over the last year has already had a very detrimental effect on the local construction industry and on projects ‘outside the fence.’ … H-2B exemptions are still granted for construction projects on the military bases, so our approach with the federal government in general and with the Department of Homeland Security in particular is that all of the construction projects on our island are tied to the military buildup. … We are gathering the evidence now and will make our case based on the numbers reflecting the economic downturn that is currently happening because of the H-2B denial.”

— Gov. Lourdes A. Leon Guerrero, speaking to a packed general membership meeting of the Guam Chamber of Commerce at the Hilton Guam Resort & Spa on Jan. 30.

worked toward his master of arts at businesses and government agen- they have been with us for four to Write State University in Dayton, cies all over Guam and Micronesia five years. Ohio. He is a certified public accountant and have also been successful in in Guam and Georgia. the Deloitte U.S. firm. While I do not Q: What are the challenges of Q & A like losing talented people, we do covering such a large region, to in- Q: What influenced you to begin not stand in their way when oppor- clude Guam, the Northern Mariana a career in the financial advising/ tunity knocks. It is rewarding to see Islands, the Federated States of auditing industry? people that we have developed and Micronesia, Palau, the Marshall Editor’s note: mentored become successes. Islands and American Samoa? Lee H. Vensel A: I actually started in IT but I Several years ago, we became part is the country kept being pushed into account- of Deloitte Southeast Asia. I spent 10 A: Travel, obviously. managing ing related responsibilities. I found years going to Vietnam to help them Understanding and respecting so partner for that I enjoyed it and was pretty with a large state-owned client. Very many different cultures and tra- Deloitte & good at it. fun trips and rewarding to watch ditions and making sure that our Touche LLP, the Vietnam office develop. When I people do not unintentionally do Guam and Q: What brought you to Guam started going there in the mid-90s, something culturally insensitive. It Micronesia. and how has that effected your Vietnam still was very undeveloped is also difficult to stay current with Vensel began career? and was just starting to establish re- what is happening in each of the ar- his career at lations with the United States. I’ve eas in which we do business. Allie Stores Corp. Vensel A: My father was stationed in the watched them grow and dramatical- in 1979 as a Navy in Guam several years after I ly improve their competence level Q: In your larger role as National controller trainee moved out of the house. We visited since those early days. In addition, Professional Practice Director, doing internal and enjoyed our stay in Guam. When I served on the Deloitte Southeast what is the importance in assuring audits before moving up to assistant I passed the CPA exam in Georgia a Asia board of directors for four years that quality and technical compli- controller at Heer Department Store in couple of years later, I was looking and have built good friendships ance is always at the forefront? Springfield Miss. He became assistant for a career change and remembered with people in Singapore, Indonesia, controller at Levy’s Department Store our time in Guam and gave the Malaysia, Thailand, Vietnam and A: Quality is the absolute bedrock in Savannah, Ga. in 1983. In 1985 Touche Ross office a call. The move the Philippines. A lot of travel in of our business. Our reputation he moved to Guam, where he began to Guam has had a huge impact on South East Asia and lots of great depends on it and really our reputa- working with Deloitte as a semi-senior my career. We have been here more experiences. tion is what we sell. Our personnel staff auditor before being promoted to than 33 years and working in Guam are required to obtain 40 hours of audit partner in 1993, being elected has given me a freedom to do things Q: What is the biggest challenge continuing professional education to the Deloitte Southeast Asia Board and make decisions that I would not in financial advising/auditing on per year plus additional CPE in any of Directors in 2013 and becoming have had in a large corporation in the Guam? specialty areas that they work in. I managing partner in 2017. United States (my previous job). would guess that most of our staff He is a member of the American A: Attracting and especially re- average more than twice the re- Institute of Certificate Public Q: What has been the most retaining talent. We seem to be able quirement every year because we Accountants, the Association of warding project or part of your to hire good people out of UOG and must stay up to date to ensure qual- Government Accountants, the Guam career on Guam? other colleges and universities and ity and technical competence. Society of Certified Public Accountants I am very happy with the younger and is past chairman of the board of A: It is hard to limit my answer to staff that we have now. But as they Q: How do you see the indus- directors for the Junior Achievement of one or even a few projects or parts gain experience with us, they be- try having shifted over the past Guam and past board member of the of my career. It is always rewarding come very attractive to business 10 years, and how do you see it Rotary Club of Northern Guam. to come up with a solution that real- and government agency clients and changing in the next 10? Vensel has a bachelor’s in ly helps a client, particularly a client even to other Deloitte offices, par- mathematics and business that is appreciative of our work. ticularly the United States. Most of A: I think the biggest change is administration from Drury College in People who have worked for us are our senior level people receive mul- Springfield, Missouri. He additionally CFO’s, controllers and even CEO’s for tiple offers from clients by the time SEE Q&A ON PAGE 18 10 February 4, 2019 - February 17, 2019 www.mbjguam.com Marianas Business Journal Local workforce prevalent in tourism; more education urged TITLE CONTINUED FROM PAGE 8 BY JOHN I. BORJA Visitors Bureau reers, she said. Hyatt’s relationship Journal staff stated that the with the Guam Community College not decrease like that of a lenders tourism industry has contributed greatly to the hiring policy, but it does not increase provides some of new employees, whether in the automatically as you improve the Guam’s labor pool may not be as 21,000 jobs. front office or in food and beverage. property. expansive as employers would like, That’s about Graduates from the University of Many people who purchase real but is it very possible for a business, 34% of total em- Guam take on positions in manage- estate make improvements to the especially one in tourism, to fill its ployment on ment, Garcia said. property, some of which can vastly ranks with local workers, as evident Guam. New hires on average go through increase the value of the asset. with the Hyatt Regency Guam. “For Guam, three months of training before they In the event of a catastrophic Out of about 500 employees at where the labor can get into the groove of their job. failure of title, an owner’s title the hotel, only 11 of them are off-is- Garcia pool is not that Front office employees, for example, insurance policy will cover your land hires from foreign countries, big, we really don’t make contact with guests un- financial losses, such as attorney’s according to Human Resources feel we can teach anyone to work on til their supervisor is confident that fees and court costs, even if you have Director Claire Garcia. The rest have the service side. As long as they have they can provide service to Hyatt’s to move out of the house, but it will been tapped here on the island — a the passion to serve, we have the re- standards. Additional training is not cover additional funds that you testament to the importance of job sources to guide them,” Garcia said. available to employees should new spent improving the property. creation in Guam’s biggest reve- Most of those employees are in standards or policies within the In my experience most people nue-making industry. base level positions, and it’s where company arise. who purchase and improve a The most recent tourism satellite most fresh college graduates find property forget to go back to their account report put out by the Guam SEE TOURISM ON PAGE 13 themselves in as they begin their ca- title company to increase the coverage to be commensurate with the improved value. In fact, when my friend asked his question I immediately realized that I had failed to increase the title coverage on the home my husband and I just recently renovated significantly. I did not feel alone though when I recalled that many years ago Japan Airlines acquired the property close to Gun Beach. When they purchased the property, they insured the ownership for the $10 million purchase price. A few years later they had invested close to $100 million building the lovely and unique Nikko Hotel on Tumon Bay. Like me, they forgot to increase their owners title insurance coverage to equal their investment. Years passed and JAL discontinued flights to Guam and decided to sell the Nikko Hotel. During the sale period, several claims of ownership were filed against the property and the Nikko Hotel tendered those claims to First American Title. First American Title decided that they could take on defense of the claims and were successful in court. It could have turned out very differently though, if the claims filed had resulted in total loss of title to the property. A $10 million reimbursement for their policy limits would not have gone far in protecting the loss the owners would have suffered. I owe my friend a big thank you, for the great question and for reminding me to adequately protect the additional investment in our home. mbj

— Kim Anderson Young is the president of Security Title. She has over 30 years’ experience in the real estate and title industry. She can be reached at [email protected]

FOR ADVERTISING AND SPACE RESERVATION Call TROY A. WHITE (671) 649-0883 email: [email protected] Marianas Business Journal www.mbjguam.com February 4, 2019 - February 17, 2019 11

ONLINE advertising, we were getting a Businesses help Majuro weather power shortage CONTINUED FROM PAGE 7 significant volume of customers who wanted to chat and use that feature,” BY GIFF JOHNSON ond engine was forced out of service to, he said, and just want reliable he said. A second adjustment he Marshall Islands Correspondent by a fire that burned the alternator. transportation — so with research anticipates having to make comes This reduced the power plant to they trust that it will be reliable and with the new trade-in process that is three generators, which combined don’t require a test drive. for the first time available online, in MAJURO, Marshall Islands — could not meet Majuro’s peak pow- What is important in the which a customer can calculate very Government representatives often er demand of close to 9 megawatts. decision-making process are those close to what his or her exact trade talk about “public-private partner- Power rationing was immediately reviews from other buyers, experts, in value would be on an existing ships.” In the Marshall Islands, it was put into effect, with a schedule for etc., as customers often believe those vehicle by simply uploading photos just such a partnership that staved extended outages affecting different reviews reflect a more informed and answering a questionnaire. If off what could have been months of parts of the atoll. opinion or expertise than their own. a customer were to opt for the full rolling blackouts in the capital city, After two weeks of rolling outag- “We’re trying to get ahead of the online experience, including delivery Majuro. es, the Marshalls Energy Co. worked consumer, which can be tricky, but option, they’d have to assess if they’d “It was a lesson learned for us,” with numerous local businesses and I think that’s the thought process,” be able to complete the transaction said Marshalls Energy Co. CEO Jack the College of the Marshall Islands Jones said. without the delivery visit. Chong-Gum in late January as two that maintain backup generators The advantage to the full In all, the company is happy with engines in the utility company’s for use during MEC outages. The re- online experience is that when the results of the feature, which has power plant were restored to service. sult: with MEC providing diesel fuel, the customer finally comes to the had “several purchases using the A few weeks after the utility the businesses ran their generators showroom — if they choose to service since it began, and many, company took one of its two 6.5 during peak consumption hours, come to the showroom — much of many interactions19-FHB-BusinessChecking_Jan-Feb_MBJ_7.5"X10"FC.pdf with customers,” megawatt 1 generators1/19/19 10:48 AMoffline in the work is already done and they Jones said. mbj August for a major overhaul, a sec- SEE BUSINESSES ON PAGE 16 can concentrate on the final act of buying a new car. “It’s all about the convenience,” Jones said. Yet there’s no change in the cost or process of the purchase, whether bought online or at the dealership, as each customer will still be dealing with a sales associate throughout. “You’re still going to want someone to teach you the features, to walk you through the paperwork — a point of contact,” he said. “That part won’t change, and I don’t want it to change. There needs to be a relationship there.” As part of this, even the delivery offering — which customers can opt in to for no extra charge as part of the full experience — will come with a sales representative who delivers the car personally, in order to walk the buyer through all of the car’s features. Because of this, the launch of the feature — which was not a significant one-time capital expense for hardware, Jones said, but instead will be an ongoing monthly expense as an evolution of the company’s current features — did not require Triple J to hire any additional staff, but instead a reorganization of responsibilities amongst his existing teams. With the live chat feature, more than a dozen of his current staff have access on an app from their phones so that someone is available during “all normal waking hours” to answer within a reasonable time. This is all part of the software application on Triple J’s current website through a popular company that at least two other dealers on Guam are also using, Jones said. During an approximately three- week soft launch, and the one week since the feature has been announced, Jones said that the only large adjustment that the company had to make was based on the extent to which people use the live chat feature. “We quickly realized that we needed to add more people to that part of the equation, to our side of the chat, because even without 12 February 4, 2019 - February 17, 2019 www.mbjguam.com Marianas Business Journal New real estate brokerage aims to build relationships

BY WAYNE CHARGUALAF rapport,” was a perfect job for me because I personal lives in a family-oriented Journal staff Dondoyano get to meet different people and I environment with strong values. said. “It’s not love people.” Alignment with company just a one-time An example Dondoyano gave values and attitudes is the key Infinity Realty, a new real transaction. I of her commitment to building attribute Dondoyano interviewed estate company located in the follow up and relationships and helping people for when selecting her team. After Tsai Building on Marine Corps see how they’re is the time she gave up $3,500 of a lengthy interview process, she Drive above the restaurant Rotten doing. All over her own commission to help a selected the four agents who now Apple, officially opened its doors the world right client buy a generator pad for their on her team and will soon take a in October, although the company now, I can house. Upon finding out what she fifth agent on board. has been operating since August. honestly say I had done, the client was so grateful Infinity Realty’s four company Although renovations and new have a place to Dondoyano they referred two other clients to values are summed up in the office furniture for the company stay because I her and she subsequently made acronym FIRE: family, integrity, were originally estimated to cost look at it as a $40,000 from their business. respect and excellence. about $50,000, final costs totaled long-term relationship and I don’t “If you focus on helping instead “I don’t expect you to be the about $30,000 after former clients just see them as dollar signs. I find of focusing on money, you’ll best, but I want you to do your of the company — one of whom is it so gratifying to be able to help actually be blessed more,” she said. best. I expect you to at least try,” a local business owner — offered people, I see them as family.” After about 11 years with she said. labor, services and assistance at a Dondoyano became a realtor Century 21, Dondoyano decided Although a new company, discount and, in some instances, with Century 21 in 2006 and to challenge herself. With the Dondoyano said she aims to for free. accumulated a number of support of her husband Derek refine her sales system so that “Because I take care of my accolades in the field, including and taking inspiration from she can duplicate success among clients, my clients took care of me,” New Comer of the Year in 2007 the values she attributes to her her agents and eventually open Joann S. Dondoyano, principal and the Century 21 Ruby Masters parents Zenaida and Edgardo at least one new office in the next broker and founder of Infinity Award in 2017, along with earning Simbulan, she decided to start her five years. She said her aim is to Realty, told the Journal. several top monthly sales awards. own company after passing her not only grow her business, but A philosophy of trusting that “As a beginner, I did really good,” broker’s exam in 2017. to inspire others with her and her genuinely caring about others will she said. “In three months I was “I didn’t start my own company team’s example. cause one to be rewarded in kind able to buy myself a Lexus and a to make more money, but really to “I would say I dreamed big, is what Dondoyano believes sets condo and I was able to invest. The inspire people,” she said. defined my values and now I’m her company apart from others in more I dealt with people, though, I As the owner of her own real living my dreams,” Dondoyano the field. That and a proven track came to realize that it feels so good estate business, Dondoyano said said. “My motto is ‘infinite record in real estate sales. to help someone find their dream she hopes to inspire her real estate possibilities.’ Don’t settle in your “I love to build relationships home. From then on, I loved it. It agents to achieve and exceed their comfort zone. Go beyond.” mbj with my clients; I love to build wasn’t even about the money. It goals in their professional and Marianas Business Journal www.mbjguam.com February 4, 2019 - February 17, 2019 13

TOURISM a couple of years, es, although the university has a of them pursuing entrepreneurial CONTINUED FROM PAGE 10 and we’re hap- more academic focus. UOG Tourism endeavors. As the next generation py to welcome Professor Fred Schumann said of businesspeople enter tourism Higher roles that require specif- them back.” the School of Business and Public and hospitality, Schumann said it’s ic skillsets have a stricter selection Higher edu- Administration doesn’t have a spe- important they’re educated on how process, and it’s unlikely for recent cation plays a big cific program or concentration in best to interact with Guam’s diverse graduates to obtain those roles, Garcia role in effective tourism and hospitality, but the sub- visitors, all the while making sus- said. However, upward mobility is hiring, Garcia ject is taught in a selection of courses tainable and responsible choices possible, depending on the perfor- said, but it’s also that students can take to comple- that will benefit the environment. mance and learning curve of the important that ment their degree. Employment isn’t always guaran- individual. In the 18 years that Garcia students be able “Educational institutions have a teed, however. Schumann has worked at the Hyatt, she has seen to get a feel of the role to play in [the tourism industry],” “Timing is a factor, and depend- graduates shift from base level posi- work environ- he said. “Having more businesses ing on when a student graduates, tions to managerial positions. ment before they decide where they and more jobs in the industry is only an employer typically won’t hold a “The turnover rate at manage- want work. She highly recommends one part. To have a strong, sustaina- position for them unless there was ment level is very minimal,” she said. more involved internship programs ble industry, we have to look at the an agreement beforehand,” he said. “You’ll see it more at entry level, and between schools and employers to education aspect of it, as well as how “The industry may need to do a little it’s for various reasons; the job may make transitioning run smoothly. tourism fits into the community.” more to publicize the opportunities not be for them, they have schedul- The curriculum at GCC requires According to Schumann, be- that are there for students. There’s ing issues or they want to be able to students to be active with the work tween 85% and 95% of graduates in not enough information on the earn- finish school. However, we see that environment at some level. UOG the school find employment after ing potential.” mbj those who do leave come back after also has obligatory internship cours- graduation, with a notable amount

PROCESS GDOE used this new flexibility Through all of the department’s want to make sure the students that CONTINUED FROM PAGE 1 to break the process down into its procurement woes, the stakehold- are there today have what they need current phases to both make it more ers most directly impacted by the to have a decent environment.” will be demolished in phase two and manageable and to help control delays in building a new school are Examples of hazard mitigation new sports facilities will be built in costs, Fernandez said. the Simon Sanchez students them- efforts include replacing air condi- its place during phase three. “There was a lot of confusion selves, who have had to continue tioning units for the cafeteria. “I think the way we’ve broken it and discussion about what exactly attending a school with known “I know some people may think out allows us to really focus on the was going to be built — how much health and safety hazards. some of these are band-aid ap- pre-development side so we think it it would cost and so forth — be- “We’ve been struggling with that proaches but ultimately we all agree will be a much smoother process go- cause under the previous models, the past few years because the antic- that a full-scale renovation is what’s ing forward,” Fernandez said. we didn’t have the design available ipated timeline under a successful needed, so we’re going to work really The process of procuring ser- and done and we would get different procurement would have been 18 to hard to make that a reality,” he said. vices to design and build the new proposals that would cover the spec- 24 months,” Fernandez said. Once land surveying gets school structure has been beset by trum with a wide range of costs,” he Although GDOE implement- started, Fernandez wants to start difficulties, including a protest from said. ed measures to ensure the health soliciting for other work and move Core-Tech Development LLC that Under the current plan, GDOE and safety of students during the on to the design phase so that GDOE was rescinded in October after the will get design work done by an ar- originally planned 18-month to can bring the community back into developer came to an agreement chitecture and engineering firm, 24-month timeframe, the school the discussion. After years of delays, with the Guam Department of receive feedback from stakeholders population has been stuck at the old Fernandez aims to get the project Public Works. Public Works had and then settle on a single design campus since the original plan was back onto its initial 18-month to previously been responsible for han- that will be bid out for construction. initiated almost six years ago. 24-month timeframe. dling procurement for the project in “By focusing and trying to finance “We rely on the administrators to “Once we get a design done partnership with GDOE, the Guam [architecture and engineering] work let us know what needs there are,” then hopefully it’s more around the Department of Land Management upfront, it will give us a better han- Fernandez said. “We do our best to 18-month timeline once construc- and other local government dle on the range of costs that we mitigate all the health and safety tion gets started,” he said, adding agencies. anticipate because we’re going to issues that we see, but some of the that they hope for work to be com- “We had to start over in terms of know exactly what it is that’s being hard decisions are how much to pleted by 2021. “That would be the trying to move this project forward,” built and it won’t be left to someone invest in the school knowing that aggressive timeframe, but we’ll just Fernandez said. “Last year we spent to come up with different concepts,” you’re eventually going to replace keep that aggressive timeline in time with the legislature and our Fernandez said. that school. At the same time, you mind.” mbj partner agencies and so forth trying to sort out how to do that.” The passing of Public Law 34- 101 in May — which gave GDOE procurement authority for any construction or renovation pertaining to Simon Sanchez High School — gave the department the flexibility to re- vise the procurement process and make it more manageable. “I think [the passage of PL 34-101] was driven by the fact that, number one, DOE has its own procurement division and we handle millions of dollars of our own procurement from both federal and local funds, so we have the experience and the capacity,” Fernandez said. “Number two, this is our project, so I think the senator felt that we are best po- sitioned to be advocates for moving it forward and to really ensure that it meets the needs of our Simon Sanchez community.” 14 February 4, 2019 - February 17, 2019 www.mbjguam.com Marianas Business Journal New hotel breaks ground in Palau BY BERNADETTE H. CARREON would be taken care of by a prestig- Palau Correspondent ious management team of China JinJiang International Group and

Switzerland Linus International of RoyalPhoto courtesy Palau Resort Garden KOROR, Palaul — A new 160-room Hotel Management Group. hotel construction broke ground on China JinJiang is a known devel- Jan. 18, with the first phase targeted oper in China having operated well to be completed by the end of 2019. known JinJiang Hotel in Shanghai. According to Ren Yongzhi, gener- “Our group companies have a ma- al manager of the Royal Palau Garden ture brand in China. We will create a Resort during the groundbreaking top island quality life here and we be- ceremony in Koror, the hotel will lieve that Royal Palau Garden Resort cover a total area of 36,671 square will be able to provide you with the meters with a building area of 17,372 best quality and most complete ser- square meters. vice of all,” Yongzhi said. A rendering of the new hotel. The hotel will sit at Yongzhi also said that the new Ngerbechedesau, Koror, an area in- hotel, although backed by Chinese cations are pending, while others construction activities. corporated into Ngermid Hamlet. investors, would cater to various applications are either waiting for en- “Growth is expected to have “We will have more than 160 markets. He hoped that the new ho- vironmental assessment approval or picked up moderately to 0.4% in fis- luxurious guests’ rooms and quality tel would also improve the economic environmental impact assessment cal 2018, as construction related to service facilities,” Yongzhi said. relationship between China and approval. infrastructure projects has resumed. Besides the hotel building, the Palau. New hotel investments will Growth is projected to increase fur- project boasts a restaurant, confer- He said this new investment will come close to $190 million, which ther to 2% in fiscal 2019,” according ence room, bars, spas, swimming help spur Palau’s tourism growth President Tommy E. Remengesau Jr. to an International Monetary Fund pools, gyms, tennis courts and 24- amid the decline in visitors for the said will contribute to the economic report in October 2018. hour housekeeping services. last three years. growth. “While Palau’s economic growth Yongzhi said the hotel, once built, Several Chinese investors have Economists forecast that Palau’s rate has been volatile due to its will offer several water activities applied for hotel applications in economy will recover despite the strong reliance on tourism, there is such as fishing and diving clubs, and Palau. continuing tourism decline, with room for greater geographical diver- its marine dock will be big enough to Since 2013 to November 2018, growth boosted by construction re- sification of the source markets of bring in yachts, motorboats, speed Environmental Quality Protection lated to infrastructure projects. tourists and the tourism locations rafts and water rafts, among others. Board has issued 14 permits for The economy suffered a slump in and products within Palau, which He said that the project will be hotels, hostels, bungalows and apar- 2017 with an economic growth de- would help reduce sectoral and done in three phases. telles, another four applications cline by 3.7%, which was attributed macroeconomic volatility,” the IMF He also said that the hotel are under review and four appli- to the downturn in tourism and low assessment said. mbj Marianas Business Journal www.mbjguam.com February 4, 2019 - February 17, 2019 15

WARHOL Legal Briefs CONTINUED FROM PAGE 8

Hawaii businessman pleads guilty Guam Board of Registration for and protested the awarding to com- dogs assisting the disabled. I am to bribes over FSM contracts Professional Engineers, Architects petitor Landscape Management concerned about people bringing The federal government on Jan. and Land Surveyors. Systems Inc. hamsters, ducks, pigs and pea- 16 filed a lawsuit against Hawaii The company argues that it was cocks encountering with airlines businessman Frank James “Jim” Court sides with DFS in rent the lowest bidder and GVB’s com- pushing for accommodations to Lyon on accusations that he bribed backpay; GIAA to appeal decision ment was without merit. GVB’s bring these animals onboard with officials from the Federated States of The Superior Court of Guam up- statements criticizing the compa- them. At some point, the federal Micronesia with at least $200,000 in held an arbitration panel’s decision ny’s work with past agencies were government will likely have to step order to obtain approximately $7.8 to order the Guam International based on false claims, the appeal in and simply ban a lot of these million in contract payments. Airport Authority to pay back DFS stated. JJ Global also accused GVB of animals from passenger cabins. Lyon is the owner of engineer- Guam’s concession rent payments colluding with LMS before informa- It really places pressure on other ing company Lyon Associates Inc. amounting to more than $2 million. tion on the bid was released. passengers who are already under The lawsuit stated the contracts A Jan. 21 news release from DFS JJ Global on Jan. 29 is requesting travel stress. included an airport improvement stated GIAA breached one of its con- OPA to conduct a hearing on the If people are demanding airlines project largely funded by the Federal tracts with the concessionaire and appeal. to let these pets in, restaurants will Aviation Administration and project the panel had ordered the airport soon face similar pressures. In a management. authority to return $1.8 million, in- OPA cancels GovGuam way, this issue just reflects the The two officials Lyon alleg- cluding a 6% annual interest, to DFS. telecommunications contracts social media fueled narcissism of edly bribed were “a government The total is now $2.9 million, DFS Public Auditor Benjamin J.F. Cruz our modern age. Should a custom- official in the FSM Department of stated. canceled all awards issued under er with a pet rat on a table next Transportations, Communications In response, GIAA announced a June 28, 2018 bid regarding tel- to you in a restaurant be allowed and Infrastructure” and “a govern- that it will appeal the Superior ecommunication services for the have it there? Should the woman ment official in the FSM Congress Court’s decision, adding that it is government of Guam, according to a demanding her peacock fly along who served on a Congressional firm in its believe that contractual Jan. 29 release from the Guam Office with her on United Airlines be al- committee with oversight over Lyon agreements between the two parties of Public Accountability. lowed to bring it into restaurants Associates’ FSM contracts.” The were clear in that disputes shouldn’t The decision follows a protest by also? At some point, it is likely we bribes occurred between 2006 and have been handled by an arbitration GTA against the General Services will have to pass local laws on this 2016, according to the lawsuit. panel in the first place, but through Agency after the telecom contract concern. mbj The feds also accused Lyon of the courts. GIAA reported a different was awarded to Pacific Data Systems. bribing unnamed “co-conspirators” amount of $2.1 million in its news According to GTA, the procurement — Ronald L. McNinch is a political analyst and in Hawaii with at least $240,000 to release. record for the bid was incomplete University of Guam associate professor of public gain a $2.5 million contract from a and therefore a decision on the bid administration. His personal viewpoints shared here state agency. JJ Global files appeal in landscape violated Guam law. Because of the do not represent those of the university. He may be Lyon on Jan. 23 pleaded guilty to maintenance procurement missing records, Cruz said the bid contacted at [email protected]. one count of conspiracy to violate JJ Global Services wants the Guam needed to be canceled. mbj the FCPA and to pay a bribe to an Office of Public Accountability to agent of an organization receiving reverse the Guam Visitors Bureau’s federal funds. His sentencing is set decision to label the company as for May 13. a “non-responsible bidder” after it Lyon also has an office on had submitted its bid for a Tumon Guam and is listed as active in the landscape maintenance contract

PPR adds beer garden to hotel

BY BERNADETTE H. CARREON Palau Correspondent

KOROR, Palau — Palau Pacific Resort kicked off 2019 with the new- est addition to the hotel — a beer garden, which is European inspired. Yumie Morishita, PPR’s sales and marketing manager said that PPR’s new Sunset Beer Garden is the best Photo by Brooks Richard place for sunset with drinks. It provides a unique view of the sunset, she said. Officially opened on Jan. 21, the beer garden is 30 by 50 square feet, comprised of an outdoor area at- The Sunset Beer Garden serves several side tached to a small indoor bar. dish that go well with beer — calamari, sau- Open every day from 5 p.m. to sages, French fries, fish fingers and more. 8 p.m., Morishita said the venue serves local Red Rooster beer and in- ees working the shift. ternational brand of beers. Morishita said the location of the Beside beers, the garden also beer garden is right at the PPR dock. offers an array of wine choices and The former gift shop was converted several side dish that go well with into the new gathering place dec- beer — calamari, sausages, French orated with large repurposed wine fries, fish fingers and more. The beer garden has two employ- SEE PPR ON PAGE 18 16 February 4, 2019 - February 17, 2019 www.mbjguam.com Marianas Business Journal

BUSINESSES Ebeye, which currently rely on old CONTINUED FROM PAGE 11 and inefficient generators, said Shift in destination weddings Chong-Gum. supplementing the power generated Currently, about 2% of Majuro’s drains businesses by the utility company. electricity is supported by solar “It was a good partnership with power. Under this project, solar BY JOHN I. BORJA “Hong Kong and Taiwan are going businesses,” said Chong-Gum. “We power will increase by an addi- Journal staff steady, and Russia seems to be pick- plan to implement it again if needed tional 7%, said sustainable energy ing up as of [December],” she said. in the future.” Project Manager Kamelesh Deshi, With the increase in Korean Fortunately, the power gener- who is working with MEC. Arrays A decline in the destination visitors to Guam, one would think ation picture looks to improve in of solar panels will be installed wedding market is prompting busi- the wedding industry would see 2019 and beyond, in large part at numerous government facili- nesses to rethink their scope of more clients from that market, but thanks to multi-million-dollar grants ties, from the airport reservoir to services as a change in trends hin- Schmidt said Korean traditions and from the World Bank and the Asian schools and basketball courts. All ders revenue. culture have them getting married Development Bank. of them will be directly linked to “You’re seeing other wedding in their homeland instead, as there A $34 million sustainable energy the MEC power distribution grid. companies do anniversaries, is usually a large turnout of family. program funded by the World Bank Bids for the equipment involved birthdays and others,” said Paula Schmidt noted that some couples that will buy new generators for are expected to go out in March. A. Schmidt, owner of Paradise do visit the island for photoshoots Ebeye and Majuro power plants and Deshi said it will take one year Weddings. “We don’t do those but prior to their wedding. greatly expand Majuro’s “solar foot- from start up to complete installa- if it has to come to that, we prob- Mindful of the shift in the mar- print” is moving into the bid phase, tion of the various systems. ably will.” ket, Paradise Weddings finds better with the hope that implementation Meanwhile, the Asian The Journal previously report- business in the local and military will start by year’s end. Development Bank is funding an ed reduced numbers in destination weddings, which is now nearly 100% In the meantime, both Ebeye and Energy Security Project which will weddings as a result of a drop in of all its clients. The numbers are no- Majuro power plants have fixed ma- boost energy security and clean en- Japanese visitors. Prior to the nu- where near destination weddings, jor problems that caused multiple ergy in the Marshall Islands, mainly clear threats by North Korea, Arluis however; on average, the company power outages in recent months focused on MEC and refurbishment Wedding, Watabe Wedding and would work on three to four wed- — Ebeye has rented two container- of the utility’s fuel tank farm. Ginza Couture Naoco had all ac- dings a month, Schmidt said. ized power units that arrived from ADB is providing a $12.7 million knowledged their clientele were “At this time, if you’re just start- Papua New Guinea, while Majuro grant, the Marshall Islands govern- decreasing. (See “Getting cold feet: ing out, it may be wiser to be a power plant engineers repaired two ment is contributing $3.1 million Decline in Japanese tourism hurts wedding vendor instead, especially engines that have now given the and MEC will provide $1 million to destination wedding industry” in because weddings nowadays are be- capital breathing room for meeting the project. Chong-Gum said ADB the Jan. 9, 2017 issue of the Journal.) coming more unique.” power demand. funding will support renovation Recently, one of them pulled out She observed that millennial The $34 million World Bank of the tank farm. All eight of the of the market. weddings are more interested in grant is supporting solar expansion 750,000-gallon tanks constructed “Two companies we provided creative, technical and non-train Majuro, buying several small gen- in 1982 are seriously deteriorated, pastors for have gone out of busi- ditional services. Pyrotechnics, erators for the Ebeye power plant with only three being used for fuel ness,” Schmidt said. “Ginza Couture uplighting, photobooths and a and one or two big generators for by MEC. Four tanks have been out of Naoco closed on Dec. 31 and World combination of live bands and MEC, energy efficiency improve- regular use for years — two of which Bridal was more than a year ago. deejays are some popular choic- ments for government facilities and contain over one million gallons of They would get about 200 weddings es in millennial weddings she has capacity building for people in the stored waste oil. a month, but now they’re out.” noticed. This can be beneficial as energy sector. The tank farm is the largest fuel Schmidt attributed several a wedding vendor, because now Chong-Gum said World Bank storage facility outside of Guam and factors to the decline, including there are newer niches in wed- funding will support adding 4.3 the Northern Mariana Islands in this residual fear from North Korea’s dings that weren’t traditionally megawatts of solar power for part of the Pacific. Chong-Gum said hostility in 2017, the decrease in there before, she said. Majuro, a significant increase over an assessment of the tank farm last flights from Japan to Guam and Meanwhile, the Guam Visitors the approximately one megawatt year concluded that at least seven the weakening of the Japanese yen. Bureau is still investing in tourism currently in use. Purchase of new of the eight tanks could be repaired. Other markets seem stable, though opportunities for the LGBTQ com- engines will greatly improve pow- “One may need to be replaced,” he they don’t nearly bring the amount munity, with one main highlight er generation for both Majuro and said. mbj of revenue as the Japanese market. on Guam’s legalization of same-sex marriage. GVB Outgoing President and CEO Jon Nathan P. Denight said the bureau has been actively engag- ing pride-related events on Guam and Japan to promote the island as an LGBTQ-friendly destination. “GVB is currently updating its LGBTQ marketing and promotion- al assets such as the LGBTQ travel brochure, working on a microsite, a Guam LGBTQ guidebook and creat- ing other content,” he said. GVB’s membership with the International Gay and Lesbian Travel Association has also opened travel opportunities for this community with a Guam-Japan sightseeing package. It may be some time before the LGBTQ market will show big numbers in destination weddings. Since same-sex marriage was le- galized on Guam in 2015, a total of 343 marriages were recorded: 62 in 2015, 103 in 2016, 100 in 2017 and SEE SHIFT ON PAGE 18 Marianas Business Journal www.mbjguam.com February 4, 2019 - February 17, 2019 17 Native Alaskan group to field presence in Guam Corporate Giving

BY MAUREEN N. MARATITA Headquartered in Palmer, Ala., Several companies continue to Coast360 Federal Credit Union Journal staff Silver Mountain Construction LLC provide support to the Northern in partnership with the Håya began doing business in April 2012, Mariana Islands to assist efforts to Foundation donated $10,000 in and is 8(a) certified by the U.S. Small recover from Typhoon Mangkhut supplies to assist with reconstruc- Business Administration. and Super Typhoon Yutu, which tion efforts in the NMI. Supplies In August 2018 Silver Mountain struck the islands in September included wheelbarrows, head- was one of six companies awarded and October, respectively. lamps and gardening supplies. an indefinite delivery/indefinite Docomo Pacific donated more Bank of Hawaii donated An established Native Alaskan quantity multiple award construc- than $8 million in free services to $10,000 to Northern Marianas corporation will soon have an office tion contract of $99 million through those affected by Super Typhoon College to help the college’s recov- in Hagatna. base and option years within Yutu, encompassing mobile, in- ery efforts as well as support its “Silver Mountain Construction is the Naval Facilities Engineering ternet, TV and phone services workforce development programs. one of the 11 subsidiary companies Command Northwest area of including free data top-ups from Matson Navigation Co. donat- of North Wind and is their first to responsibility. Oct. 24 to Dec. 31. Docomo also al- ed more than $21,000, with the open on Guam,” Doyon A. Morato, Silver Mountain was one of lowed GTA subscribers to roam for company matching more than operations manager for Silver 15 companies awarded a $540 free for one month on Docomo’s $10,000 in employee donations. Mountain, told the Journal. million 2017 construction and re- network in Saipan, including The donation is part of a pledge Silver Mountain will open doors pair contract for the U.S. Army’s service members helping with re- Matson announced in October to on Feb. 7 at the J&G Plaza and will Washington and Oregon National covery efforts. The company also contribute $125,000 in cash and field a significant presence for its Guard units. Company awards in- donated $4,300 in customer con- in-kind support for storm recovery open house reception. clude a December 2016 contract at tributions to the American Red efforts. Guests can expect to meet the Alaska’s Eielson Air Force Base and Cross, which was collected from NAPA Auto & Truck Parts president and CEO of the North Clear Air Force Base that entails Docomo customers during fund- Saipan, NAPA Auto Parts Guam Wind Group, the president of Silver property maintenance, repair and raising efforts. and Mid-Pac Far East LLC Guam, Mountain and the business develop- some construction work. In May Representatives of Korean donated $15,000 to the American ment manager of Silver Mountain, 2016, Silver Mountain completed Marianas Tourism Council do- Red Cross NMI Chapter and $5,000 all of whom will be flying to Guam a battalion headquarters at Fort nated $10,000 to Karidat Social to Commonwealth Advocates for for the Feb. 7 open house. Wainwright, an Army base just east Services on Jan. 10 during a famil- Recovery Efforts. The company is expected to com- of Fairbanks in Alaska. iarization tour of Saipan organized LDS Charities donated more pete for lucrative federal projects, Since 2009, parent compa- by the Marianas Visitors Authority. than $1 million to the American since it has wide experience in that ny North Wind has itself been a Jeju Air, Tour 2000, Sejoong Tour, Red Cross NMI Chapter to as- area, and is already performing work wholly-owned subsidiary of Cook Very Good Tour, Tide Square, SM sist with recovery efforts. LDS for various clients in the U.S. mili- Inlet Region Inc., an Alaska Native Town Travel, KRT and Naeil Tour SEE CORPORATE ON PAGE 19 tary and federal agencies. Corp. mbj all contributed to the donation. 18 February 4, 2019 - February 17, 2019 www.mbjguam.com Marianas Business Journal

PPR Q&A talent. The more routine, repetitive CONTINUED FROM PAGE 15 CONTINUED FROM PAGE 9 A: Work on your communication parts of our work are being auto- skills, both oral and written. Most mated out and to stay relevant to barrels and a shaded outdoor seat- the degree of automation in our people see accounting and auditing our clients, we are going to have to ing area. jobs. I think in the next 10 years as very numbers/math oriented but take on more complex, innovative Morishita said because the pool the level of automation will con- being able to communicate the re- projects and engagements. One way bar offers limited choices of beer, tinue to increase and many of the sults of our work effectively is just we are meeting this challenge is by the Sunset Beer Garden is the per- more routine tasks that our people as if not more important than the hiring and promoting more wom- fect place close to the water to relax now perform will be automated. numbers. en in the profession, which was a with a beer. mbj However, I do not see a significant largely untapped resource when I reduction in CPA work because the Q: Is there anything about your started in public accounting. The degree and complexity of regula- work we didn’t ask about that you most recent statistics I have on our tion also continue to increase. Our feel would interest the business firm indicates that our staff is 69% SHIFT work will not be that much less; it community? female with more than half of our CONTINUED FROM PAGE 16 will just be different. partners, directors and managers A: The biggest challenge I see also female. I think this is a good 90 in 2018, according to the Guam Q: If you had one piece of advice for our profession in the future (as trend for the profession that will Department of Public Health and to a young professional beginning I mentioned above) is going to be help us meet the talent challenges Social Services’ Bureau of Vitals in the career, what would it be? attracting, training and retaining of the future. mbj and Statistics. mbj

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CORPORATE CONTINUED FROM PAGE 17

Charities is the humanitarian aid arm of the Church of Jesus Christ of Latter-day Saints. Photo courtesy of McDonald’sPhoto courtesy Saipan Bank of Guam will award a $2,000 college scholarship to five high school seniors from the class of 2019 under the bank’s 2019 IFIT Scholarship Program. Students must submit applications by March 8 and must include three letters of recommendation and a one-min- ute video clip about the applicant. The applicant must also submit McDonald’s Saipan donated $30,000 to the American Red Cross Northern Mariana Islands Chapter to answers to three essay questions. assist with recovery efforts in the aftermath of Super Typhoon Yutu. (From left) Beverly I. Camacho, disaster action Ten semifinalists will be selected team member; Patty T. Palacios, board member; JD Tenorio, disaster program manager, all of the American Red by April and the final five recipients Cross NMI Chapter; Joe E. Ayuyu Jr., area supervisor; Marcia E. Ayuyu, owner and operator, both of McDonald’s will be announced in May. Saipan; Gov. Ralph DLG. Torres; John Hirsh, executive director; Jerry Tan, president, Tan Holdings Corp., and honorary board member, both of the American Red Cross NMI Chapter. IT&E donated $2,000 in cash and four Samsung J6 Pro phones with three months free 4GLTE service to the 15th Annual Tinian Hot Pepper Festival, to be held Feb. 16 to Feb. 17. IT&E also signed on as the Exclusive Pika Sponsor for the festival.

The Staywell Diabetes Foundation donated $30,000 to the Guam Tano Ta Branch Guam Lions of Guam of the University Photo courtesy Club on Jan. 2. The funds will contribute to the purchase of a mobile health van to help with diabetes education and outreach throughout the island.

McDonald’s Guam donated more than $570 to Captain H.B. Price Elementary School. The funds were raised during (From left) Sharleen Santos-Bamba, associate dean, University of Guam College of Liberal Arts and Social Sciences; Hunter Orland, freshman fine arts major and scholarship recipient; Rebecca A. Stephenson, UOG professor emerita of anthropology; Madison Orland, freshman McTeacher’s Night on Nov. 8. fine arts major and scholarship recipient; and James Sellmann, dean, College of Liberal Arts and Social Sciences.

The James L. and Rosita S. The University of Guam awarded a $1,000 Dr. Rebecca A. Stephenson Scholarship for the 2018 to 2019 Adkins Scholarship Foundation academic year to two students, Hunter Orland and Madison Orland, both freshman fine arts majors. Scholarship donated $20,000 to the GCA Trades recipients must be undergraduates at the UOG College of Liberal Arts and Social Sciences and are selected based on Academy on Jan. 3. The donation an essay submission, letters of reference and academic standing. will contribute to scholarships for students pursuing training in the construction industry.

The Triathlon Association of the CNMI donated bicycles to six youth athletes: Tania Tan, Aoi Braxton, Kaithlynn Andrei Chavez, Isaiah Aleksenko, Simon Shah and Isaiah He. TAC president Ricky Castro said the donations were possible because of the support of various local companies, including T Galleria by Photo courtesy of Robert Marks of Robert Photo courtesy DFS Saipan, Tan Holdings Corp., Kanoa Resort Saipan, Bridge Capital LLC, Triple J Motors Saipan, IT&E CNMI and Pacific Trading Co. Ltd. mbj

FOR ADVERTISING (Rear, from left) Mark Mendiola, chairman, 9th Guam Education Board; Robert Marks, Western Pacific manager, exp.; and (front, from left) AND SPACE RESERVATION Erica Cepeda, assistant principal, Agueda I. Johnston Middle School; Samantha Quintanilla; Jake Oclima; Arthur Oclima; Kristian Versario, Call TROY A. WHITE all students; and Rebecca G. Perez, principal, all of Agueda I. Johnston Middle School. (671) 649-0883 email: exp. donated $2,000 worth of cleaning supplies to Agueda I. Johnston Middle School on Jan. 4. The sup- [email protected] plies were donated to for a program where students will assist in cleaning and maintaining the school 20 February 4, 2019 - February 17, 2019 www.mbjguam.com Marianas Business Journal

Focusmbjguam.com The Rotary Club of Tumon Bay District 2750 held an “Adopt-A-Shelter” ribbon cutting on Jan. 18 at the Joseph Flores Memorial Park in Tumon. Photos by Justin Green

SEE MILITARY ON PAGE AA

(From left) James Robinson, president, Filipino Community of Guam; Lt. Gov. Joshua F. Tenorio; Representatives from E&A Engineers, Benson, Sunny Wholesale Distributors, the Bicol Club of Nenita Baldovino, owner, Rambies Corp., and chairwoman, Rotary Club of Northern Guam Adopt- Guam, Rotary Club of Tumon Bay, Filipino Community of Guam, Core Tech International, Rambie’s A-Shelter project; Gov. Lourdes A. Leon Guerrero; Patrick Luces, program coordinator, Guam and Full Circle LLC are recognized donors of the Adopt-A-Shelter project. Department of Public Health and Social Services; and Mary P. Rhodes, president, Guam Hotel and Restaurant Association.

The annual Saipan Chamber of Commerce Business Person of the Year Gala was held on Jan. 19 at the Hyatt Regency Saipan. Photos by D&R Visuals

(From left) Maxine Laszlo, executive director; Alexander A. Sablan, vice president, Tan Holdings; (From left) Gloria Cavanagh, general manager, Pacific Islands Club Saipan; John Hirsh, executive Joe Guerrero, business development manager, Bridge Capital LLC; Velma Ann M. Palacios, director director, American Red Cross Northern Mariana Islands Chapter; Glen Hunter, owner, The Shack of network operations, IT&E CNMI, and president, Saipan Chamber of Commerce, and 2018 Saipan; James Lee, beverage and sales manager, Marianas Pacific Distributors Inc.; Ron Moon, Business Person of the Year; Shayne Villanueva, operations manager, Aon Insurance; Perry Inos founder and president, Angil Design Inc.; Palacios; and Janice Tenorio, customer service manager, Jr., business development manager, Triple J Enterprises Saipan; Marcia Calvo, account executive, IT&E CNMI, all nominees of the 2018 Saipan Business Person of the Year. Not pictured is Nola Hix, Calvo’s Insurance; Janel V. Pangelinan, claims examiner, Pacifica Insurance Underwriters; and services and solutions executive, Xerox Saipan. Tyrell Pauling, director of food and beverage, Hyatt Regency Saipan, all of the Saipan Chamber of Commerce.

Villanueva, upon being named 2018 Saipan Young Professional of the Year. (From left) Rep. Edwin K. Propst, 21st Commonwealth Legislature; Daisy Propst, financial aid director, Northern Marianas College, and wife of Edwin; Svetlana Hunter, assistant general manager, DFS Group Ltd. Saipan; and Glen Hunter; husband of Svetlana. Marianas Business Journal www.mbjguam.com February 4, 2019 - February 17, 2019 21

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The Guam Young Professionals Event of the Year was held on Jan. 25 at the Pacific Star Resort & Spa. Photos by Justin Green

(From left) Anthony M. Mariano, digital media manager, Glimpses Media; Kenneth V. Quintanilla, (From left) Jon Ulloa, financial adviser, Asia Pacific Financial Management Group; Roxann Akana- public relations coordinator, Docomo Pacific Inc.; Phillip Leon Guerrero, talk show host, K57; and Sanford, project manager, Guam Hotel and Restaurant Association; Vanessa Malumay, radio Anthony Quenga, assistant vice president and business development officer, Bank of Guam. advertising consultant, Choice Broadcasting Co. LLC; Kamia Dierking, director of marketing communications, GTA; R. Marsil Johnson, attorney, Blair Sterling Johnson & Martinez Law Firm; Celia Chavez, teacher, Guam Department of Education; and David Sanford, vice president, Sanford Technology Group LLC.

(From left) Nia Lim, promotions specialist, DFS Group Ltd.; Sonya Perez, teacher, Guam Department (From left) Nicole Cornelison, promotions manager, Mid-Pacific Distributors; Cierra Raphael, sales of Education; and Nathan Taimanglo, chief people officer, Docomo Pacific. coordinator, Island Wines and Spirits Guam; and Judy C. Rosario, government manager, Docomo Pacific.

Calvo’s Insurance Underwriters Inc. celebrated its 80th anniversary on Jan. 25 at the Dusit Thani Guam Resort. Photos by Justin Green

(Standing, from left) Daniel J. Tydingco, executive vice president of legal, regulatory and external, (From left) Dr. Thomas Mick, sports medicine, IHP Medical Group; Terrence M. Brooks, attorney, GTA; Lory Tydingco, owner, Brown Bag Café and co-owner, Kracked Egg, and wife of Daniel; and Brooks Concepcion Law; Leonard P. Calvo, president, Calvo Enterprises Inc.; and Natalie Calvo, (seated, from left) former first lady Rosa Baza Calvo; former Gov. Paul M. Calvo; former first lady treasurer, Edward M. Calvo Cancer Foundation, and wife of Leonard. Christine Calvo; and former Gov. Edward B. Calvo. 22 February 4, 2019 - February 17, 2019 www.mbjguam.com Marianas Business Journal Briefcase Business giant with Guam The store moved to a connections passes away 27,000-square-foot space inside the MANILA — mall below the movie theater, but in- Businesswoman and educator Professional Human Resources, Henry Sy Sr., itially suspended operations. It now passes away according to Journal files. the “rags to rich- does business in the space as SM MANGILAO, Perez participated in a num- es” billionaire, Island. Guam — Karri ber of community endeavors. passed away Jan. The Sy family was also present at Trahin Perez She served as president of the 19 in Manila at the Nov. 17, 2006 opening of Tango passed away Society for Human Resource age 94. Theatres in the Agana Shopping suddenly Jan. Management on Guam, the Sy opened his Center. 27 in Guam. She Guam American Cancer Society first shoe store Sy Sr. received an honorary de- was president and Friends of the Guam Public in 1958 and his gree from the University of Guam of Leading Edge Libraries. A certified American first department Sy on May 27, 2007, which was ac- Consulting, Red Cross cardiopulmonary store in 1972, cepted by Elizabeth Sy. He had where her hus- resuscitation and first-aid in- Perez branching out donated $300,000 towards the Jesus band, Gerald structor, she was responsible for to develop a business empire that & Eugenia Leon Guerrero School of S.A. Perez is the implementation of training in spans not only the Philippines, but Business and Public Administration managing director. She was also Palau on behalf of the American in recent years China. building, with Room 102 to bear his an associate professor of global Red Cross. In 2017, Sy became chairman name, according to Journal files. resources management at the She also was an expert col- emeritus of SM Investments Corp., University of Guam, producing a umnist for the Journal. SM Development Corp., Highlands CCU authorizes spending for number of research works. Perez held a master’s in or- Prime Inc., BDO Unibank Inc. underground power lines Perez, at one time human re- ganizational development from and honorary chairman of China MANGILAO, Guam — The sources director of the Westin Fielding Graduate Institute and Banking Corp. Consolidated Commission on Resort Guam, became known an industrial/organization phsy- Sy’s children have long been Utilities on Jan. 22 approved for developing cultural diversity chology/business master’s from involved in the SM businesses, Resolution 2019-2, which authoriz- training, as well as addressing Radford University. She also though Jose Sio is chairman of SM es expenditures for construction of global communication and diver- held a bachelor’s in criminal jus- Investments Corp. the Tumon Bay Lateral Conversion sity issues in a customer-service tice and sociology from Radford Teresita T. Sy-Coson is vice chair- Project. context. University. person of SM Investments and The project aims to place power She was the first human re- Perez is survived by Gerald chair of the executive committee. lines along San Vitores Road under- source professional on Guam to S.A. Perez, her three children and Sy-Coson is also the executive di- ground and to upgrade the system so receive Senior Certification for three stepchildren. rector and chairperson of the board that it will remain intact in the event of Banco de Oro Unibank Inc. and of a typhoon. also holds board positions in sever- Funding for the project will be al companies within the SM group. provided by GPA Revenue Bonds to Henry T. Sy Jr. is the co-vice chair- Core Tech International, which was man of SMIC and chairman of SM the lowest bidder. The estimated Prime Holdings Inc. and Highlands cost of the project is $5.2 million. Prime Inc. He is also the chairman and CEO of SM Development Corp. More military contracts up for Elizabeth T. Sy is senior vice pres- grabs ident for marketing of SM Prime JOINT BASE PEARL HARBOR- Holdings, the holding company of all HICKAM and WASHINGTON, D.C. mall investments of the SM Group. — The Department of the Navy on Harley T. Sy is the executive direc- Jan. 16 and Jan. 17 issued a sources tor of SMIC. He is a director of China sought notice for galley services at Banking Corp. and other companies Naval Hospital Guam and a com- within the SM Group and adviser to bined synopsis and solicitation the board of BDO Private Bank. He is notice for repairs to the USS Frank

the co-vice chairman and treasurer Cable, respectively. Photo Mariano Anthony By of SM Retail Inc. The purpose of the sources Elizabeth T. Sy is an adviser sought notice for galley services at to the board of SM Prime and SM Naval Hospital Guam is to request Investments and, a member of the assistance in the preparation of a executive committee and trust com- single award facilities support con- mittee of the Board of BDO. She is tract. Responses, along with other also the chairperson and president market research, will be used to Jessica Leon Guerrero holds up her 2018 Reina A. Leddy Guam Young Professional of of SM Hotels and Conventions Corp. make various determinations for the Year Award. and co-chairperson of Pico De Loro procurement. Beach and Country Club. The purpose of the synopsis and Guam Chamber names Young Professional of the Year Elizabeth Sy is president of GFPP solicitation notice for the USS Frank TUMON, Guam — The Guam Chamber of Commerce on Jan. 25 Inc., which does business as the Cable is for reassembly of the steam awarded the Reina A. Leddy Guam Young Professional of the Year Agana Shopping Center. turbine and reduction gear for the Award to Jessica Leon Guerrero, president and owner of M80 Systems The SM store closed at Agana number two ship service turbine and brand manager of Island Wines and Spirits, according to a release. Shopping Center on April 18, 2016. generator for ABS special survey on- The award was presented during the Guam Young Professionals Event The store had opened on Nov. 17, board the vessel. of the Year at the Pacific Star Resort and Spa. 2006, according to Journal files, with Naval Facilities Engineering Nominees for the award were Francesca Ambrose, account exec- 42,000 square feet of space and a to- Command Pacific on Jan. 23 award- utive, Calvo’s Select Care and owner, Steel Athletics; Kamia Dierking, tal of 50 employees. The Sy family ed a $149 million firm-fixed price director of marketing and communications, GTA; Selena Elicio, pro- was in attendance at the ribbon cut- contract to Core Tech—Hawaiian prietor and managing partner, Outback Steakhouse; Camilo Lorenzo, ting and blessing ceremony on Nov. Dredging Construction Company account executive, Matson Navigation; Earvin Jose, brand manager, 16, 2006 though Henry Sy Sr. was Mid Pacific Distributors and Island Beverage Distributors; and John already frail at that time. SEE BRIEFCASE ON PAGE 23 Reyes, vice president, business intelligence manager, Bank of Guam. Marianas Business Journal www.mbjguam.com February 4, 2019 - February 17, 2019 23

BRIEFCASE a partnership with Hawaii Pacific CONTINUED FROM PAGE 22 Teleport, according to a Jan. 21 release. Among the anticipated Inc.—Kajima LLC of Tamuning to benefits of the move are improved design and construct three training connectivity, enhanced colocation areas — a combat vehicle operators and disaster recovery and great- course; a facility combining a hand er network redundancy and grenade range, live-fire shoot house diversity through satellite band- and breacher facility; and a range width to islands with limited warehouse, area distribution node subsea cables. The 12,000-square- and communication tower — at foot Guam Teleport located in Andersen Air Force Base. Pulantat will be utilized.

Joint Region Marianas will start of Nissan GuamPhoto courtesy Section 106 consultations with SBA disaster loan center replaces stakeholders on Guam and the disaster recovery center on Saipan Northern Mariana Islands regard- GARAPAN, Guam — The U.S. ing the range, which falls under Small Business Administration the 2009 Mariana Islands Range on Jan. 29 opened a Disaster Loan Complex Programmatic Agreement. Outreach Center, according to a Jan. According to JRM, the “stake- 23 release. The DLOC replaced the holders” are Guam State Historic Disaster Recovery Center, which The new 2019 Nissan Altima. Preservation Office, the National closed on Jan. 26. Park Service and Guam Preservation Those who sought assistance New 2019 Nissan Altima unveiled Trust. “In addition, we have invited from the Disaster Recovery Center UPPER TUMON, Guam — The new 2019 Nissan Altima was on these consulting parties to share the will still be able to find informa- Jan. 18 officially rolled out on Guam at the Nissan Guam Showroom in invitation with other interested enti- tion and check the status of their Upper Tumon, according to a Jan. 15 release. ties and individuals,” JRM said. applications by logging on to their The new Altima comes in five trims with an exterior inspired by The contract is funded by the account at disasterassistance.gov the Nissan Vmotion 2.0 concept which debuted at the North American government of Japan as part of the or calling the Federal Emergency Auto Show in Detroit in 2017. The previous generation’s 3.5-liter V6 en- International Agreement between Management Agency hotline at gine has been replaced with the world’s first production-ready variable the United States and Japan. 800-621-3362. Those who are deaf, compression turbo inline four-cylinder engine, which aims to replicate Work is expected to be complet- hard of hearing or have a speech the performance of a V6 engine with the fuel economy of a four-cyl- ed by November 2022. – A version of disability can use a teletypewriter inder engine. The interior includes smartphone integration with this story was sent as a News Flash to to call 800-462-7585. Apple CarPlay and Android Auto and a seven-inch drive assist display. Journal subscribers on Jan. 24 Additional features include automatic emergency braking, intelligent Harmon ANZ branch to close forward collision warning and intelligent driver alertness. HAGÅTÑA, Guam — ANZ Guam Inc. will be closing its Harmon location on Feb. 28, according to a Jan. 28 announcement. ANZ will operate solely out of its Hagatna location in the Julale Shopping Center. There will be no changes to account numbers, direct deposits or other services and the bank will continue to honor personal checks UOG to introduce certified nursing with the Harmon address. ANZ will assistant program contact customers with safe de- MANGILAO, Guam — A new posit boxes, night drop boxes and program to train certified nursing deposits delivered by armored car assistants — also known as CNAs — services to the Harmon branch to will be introduced by the University discuss banking arrangements. of Guam School of Nursing and Health Sciences and the Guam of Department of Labor in February, according to an Jan. 24 release. There are currently 50 vacant CNA positions among the program’s three participating employers — Guam Regional Medical City, Guam Memorial Hospital and Health United Airlines announces Services of the Pacific. The program’s additional flights first cohort, which will undergo TAMUNING, Guam — United 160 hours over the course of three Airlines will be adding additional months, is expected to have 12 stu- flights to meet added demand dur- dents who will apprentice at GRMC ing spring break and the Golden and Health Services of the Pacific. Week holiday period in Japan, ac- Those interested in participat- cording to a Jan. 29 release. ing in future cohorts can contact Nine extra flights on Boeing UOG Apprenticeship Coordinator 737 aircraft between Tokyo, Narita Danilo Bilong at 735-2650 or and Guam will be added for March [email protected]. 31, April 2, April 5, April 28, April 29, May 1, May 2, May 4 and May Docomo Pacific partners with 5. These flights are expected to add Hawaii-based teleport firm more than 1,300 seats each way be- TAMUNING, Guam — Docomo tween Tokyo and Guam. Pacific will be adding teleport ca- pabilities to its offerings through SEE BRIEFCASE ON PAGE 27 24 February 4, 2019 - February 17, 2019 www.mbjguam.com Marianas Business Journal

BAG ents, single mothers to come in Dengue under CONTINUED FROM PAGE 5 and make baskets for a few hours a week. We’ll pay them and we’ll control but Palau create jobs for people that need Aside from gifts, the packages them,” he said. Hermosa said he minister asks public will include cookies and chocolates also views Guam Gift Baskets as to be vigilant and what Hermosa said will be a business incubator for design “treats made on Guam for sure,” as professionals and entrepreneurs BY BERNADETTE H. CARREON well as other popular items. wanting to understand business His aim is to offer “a beautiful skills such as inventory manage- Palau Correspondent product at an affordable price — ment and IT. just a beautiful experience. We’re As to promoting local small KOROR, Palau — From Dec. 1 getting close to finalizing the pric- businesses, he said, “These smaller to Jan. 20, there are 66 dengue cases,” he said. vendors — we can get their products es confirmed in Palau, but with Hermosa Ventures LLC out worldwide,” he said. “I have plen- effective response vigilance in pre- which does business as Guam ty of distribution channels.” vention, Palau Health Minister Gift Baskets will launch me — to participate in the program,” Hermosa is incorporating his Emais Roberts said the outbreak www.guamgiftbaskets.com in he said. own skills and experience in Guam would be under control. mid-February — though the site Additionally, he intends to de- Gift Baskets, he said. “From a busi- There are no reported deaths is up, with an app planned also. velop a local workforce of people ness perspective it incorporates a from the dengue cases but Palau for Hermosa is looking to offer ad- that are looking for flexible hours. lot of things I’ve done my whole the first time confirmed cases of se- ditional product lines. “I want to “I want to be able to get enough life — business management and rotype 3 in Palau. invite more local vendors to contact momentum to hire single par- distribution.” mbj “It’s sort of under control, because we are catching it early. But it does not lessen the threat,” Roberts Roberts said although the there were two confirmed cases of dengue 3, both have recovered. In 2017, five deaths were recorded as a result of dengue virus. That year there were 500 cases of dengue fever. In response to the outbreak, the Ministry of Health activated its emergency response team on Dec. 7, 2018. He said the ministry encour- ages the public to go to the doctor immediately if they have any symp- toms of dengue fever. “That’s the reason why we have no severe cases, we detect them early and we treat them early,” Roberts said. He cautioned the public that though that those who had been diagnosed with dengue before are susceptible to the type 3 dengue. The emergency response team has been tasked with raising community awareness on the outbreak. Dengue prevention measures have also been in place as well as disease surveillance and reporting, strength- ening mosquito control measures and ensuring adequate resources are available to combat the outbreak. In an interview on Jan. 28, Roberts said there are seven patients isolated at the hospital confirmed with dengue, but they are quickly re- covering. He also said there are two reported as critical, but due to early treatment sought by the patients, they were able to recover. The ministry is also urging people to destroy mosquito-breeding sites particularly during the rainy season. He said rainwater could cause areas where mosquitoes can breed. mbj

FOR ADVERTISING AND SPACE RESERVATION Call TROY A. WHITE (671) 649-0883 email: [email protected] Marianas Business Journal www.mbjguam.com February 4, 2019 - February 17, 2019 25

MAGIC quickly and on a bigger scale in or- CONTINUED FROM PAGE 1 der to get a reaction. Taking this same speed and size back to the anything else we’ve done in states, he found that he was working the states. The audience make- faster and harder than other magi- up is completely different, and cians — thus earning his nickname the magic has to be tailored and as “the shotgun magician,” he said. geared towards that,” he said. He Another difference that the Asia explained that here more than an- market brings to magic on Guam is ywhere you can’t rely on language its tolerance for live animals in the to pull you through but must use shows. Whereas in the United States, magic as an international lan- regulations and attitudes have guage. “If you can plug your ears quickly done away with live animals and watch the show and still un- as performers, the Asia market is derstand what we’re doing, then still interested. “It’s a big pull factor we’re doing it right,” he said. for our audience still,” Ryan Zubrick Master magician Anthony Reed said. Both the Zubrick’s and Reed, of Encore! said that this same theory with show partner and Comedy is what helped him grow in his pro- Magician Hank Rice, agree that this

fession not only on Guam, but back is something they don’t see lasting of ZubrickPhoto Magic Inc. courtesy in the U.S. mainland as well. too much further into the future. “Guam made me a better magi- Although the changing market cian,” Reed said. He said that with mix — particularly with the decrease the Asian market he learned how in the Japan market and increase in to convey a message to an audience Korean market — hasn’t necessarily who generally has a very short atten- decreased sales, it doesn’t mean that tion span, as well as different ways adjustments haven’t been made to of reacting. With the Japan market’s accommodate. But much of that is polite nature, he found that he had (From left) Ryan and Chris Zubrick won the International Magicians Society’s Merlin Award for to do more magic or illusions more SEE MAGIC ON PAGE 26 Best Familiy Magic Show in January 2018.

The business of magic Most magicians, including if you want to learn it you have to “I think we’re in a very fortunate would have gone out of the busi- those performing on Guam, will learn it on the road, the real way,” situation because, candidly speak- ness in the first few months. In tell you that they got their start Reed said. “And you have to put ing, we get paid whether there are show business it takes a long time in magic as a child performing everything into it — 100%. Don’t 10 people in the audience or 400 to do well.” tricks for family members, church be the jack of all trades, be the or 500 people in the audience. It comes down to more risk groups and non-profits. Yet while master of one.” And a lot of the others ... they’re for more potential and freedom, some scoff at the idea of magic He said that those who try to in this friendly competition to get Murday said. The biggest mistake as profession, the magicians on “jump the line” will fail in magic, the tourists and the customers to that new magicians make think- Guam told the Journal that it’s a and it’s important to take the small come to their show. So is Baldyga ing that their magic will see them profession that can be as lucrative steps in learning your trade and Group, but we don’t have to wor- through. But it’s the perfect mix of and stable as any. learning business before you try ry about that,” Ryan Zubrick said. show, entertainment — including “There are magicians that are to be big. “Stick to the commando “They take care of putting people’s lighting, sound, musical choices, doing school shows that are mak- act. … Make it portable, make it butts in the seats, and we just have mood, how to construct a show, ing six figures. There’s the weekend play big, pack small. … If you can to worry about the show,” Chris etc. — planning/partnering and warriors who are just magic en- make your act fit in one case and Zubrick said. marketing that will breed success, thusiasts and they’ll do it on the play big, you will make a career out The second direction is to pro- Murday said. weekends for events. You’ve got of it,” Reed said. duce a show yourself, Murday said. He said that the greatest thing the whole broad spectrum there,” Listening to advice and seeking In producing it yourself you, have that Reed taught him was that in Ryan Zubrick said. Both Ryan and mentoring from those more experi- two options — to “four-wall” or to starting his own show, he should Chris Zubrick went directly into enced in the business community “two-wall.” expect to lose money in the first magic as a profession, although is advice that was given by all four “Four-wall is you rent the room year, break even in the second and through two different paths. “I’ve magicians the Journal spoke with. — that can be the most lucra- finally expect to take a salary in never really had another job,” Ryan Murday said that when he arrived tive and it has the most freedom, the third. “It’s not a science, but he Zubrick said. on Guam, mentoring from both but also it takes the most balls,” was right,” Murday said. The same goes for Reed and Reed as a businessman and Rice Murday said. You are responsible “There’s money to be made in Murday, both of whom started out as an artist were key in his success. for all aspects of the show, from magic,” Reed said, if you focus on with backstage, technical and mag- “Think of it as show business, sales to magic to concessions, etc., selling the feeling and the expe- ic shop gigs before moving to front don’t think of it as just show. as Reed has done at Encore!, which rience. But you can’t lose sight of of stage. Although Rice has held Because you will chase the mon- was an investment of $2.6 million why you’re there in the first place, corporate positions throughout ey your whole life and never make to launch, Reed told the Journal. he said. His favorite advice came his career, whenever he has turned any. You have to know the busi- Two-walling, on the other from something he learned from to magic, his successes come from ness. … Start early with business hand, is what Murday is currently one of his inspirations, David when he has turned his whole at- advice,” Reed said. doing at the Westin Resort Guam, Blaine, who makes millions of dol- tention to the profession. Murday said that he followed which consists of a location/show lars per year. The key to success, according this advice and took into account partnership in which the show ad- “When he gets an offer to to both Chris Zubrick and Reed, the various types of businesses vertisement cost and sales is split do something, he asks himself, is to find your niche, give it all that he could venture into before in an agreed upon percentage, but ‘Would I take this gig or do this you’ve got and remember to start building his own. He explained neither party is responsible for thing for $1?’ That keeps him on small. “If you try to be the broader that there are multiple paths as a paying the other in any manner. the path of doing things that are spectrum and hit it all, it’s a little magician — one being to get hired “There’s so many ways to do interesting to him and following harder,” Chris Zubrick said. for a show, such as the Zubrick/ business,” Murday said. “If I had that has led to financial success,” “You can’t learn magic in class, Baldyga relationship. four walled from the beginning, I Reed said. mbj 26 February 4, 2019 - February 17, 2019 www.mbjguam.com Marianas Business Journal

MAGIC with continue to have big plans to CONTINUED FROM PAGE 25 continue to adjust to the changing industry on Guam, and to continue dependent on the type of show and to breed the success of their shows magic performed, as well as the size and in careers. of the show. Zubrick Magic is halfway through With a larger venue, seating up to its fourth year of what is typical- around 500 people per show, and a ly a five-year run for most Baldyga show focused primarily on illusion shows, yet the Zubrick’s have been magic and performance instead of performing with the company speech, the Zubricks said that they on Saipan and Guam since 2007. haven’t had to change much of their “We’ve been the longest running show and haven’t seen a decreased magicians with the Balydga group volume of customers aside from the … we’re ready to try something new. regular seasonal ebb and flow, but We’re actually doing something re- have noticed the change more in ally unique that’s never been done of Encore!Photo courrtesy the audience makeup per showtime. this year — we’re taking a six-month The Japanese prefer the early dinner sabbatical, bringing in a magician experience with the show, whereas from the states to do the show for the Korean’s typically eat elsewhere those six months,” Ryan Zubrick and come to enjoy a cocktail with said. The understudy has been se- the later shows, they said. lected from the mainland and will be Anthony Reed of Encore! performs large illusions for up to 200 guests. But the smaller the show, and in the show from May to November, the more catered it must be, as seen he said. If and when the show ends in both Reed and Rice’s Encore! — after it hits five years, the Zubrick’s seating around 200 — and Magician are eager to experience something Nabil Murday’s show at Magic new, especially with the upbringing Rocks, which seats only 37. Encore! and schooling of their 2-year-old has from its beginning in October son, Oliver, in the foreseeable future, of 2015 focused and catered to the they said. Chris said no matter their Korean market and has continu- role, he knows that magic will con- ously been selling out shows in tinue to flourish at the Sandcastle. recent months. But Rice, who got “Baldyga has always had magic in his professional start in magic in his shows, for 30 years, and I think Japan and who’s act focuses on the that will continue,” he said. comedy aspect of magic, had to sig- For Encore!, only small changes nificantly review his performance lie ahead with its Guam show — mi- and adjust for a more international nor tweaks in specialty acts, stunts audience when he joined Encore! in and magic that Reed tweaks and per- September of 2018. The same goes fects annually. “It’s 40 years of trial for Murday, who previously had and error to a point where it’s near translated many of his jokes from perfection,” he said. Yet big changes of Encore!Photo courrtesy English to Japanese for that market, may be down the line, as Reed has but with a growing mix of customers been approached by several major has had to do away with speaking or hotels in various locations including projecting words when possible. “I Las Vegas, Dubai and the Philippines have had to change my show — a lot to potentially franchise and produce of [the magic] was about language,” Encore! in their locations. “They Hank Rice’s comedy magic act serves as the perfect mix to join the larger illusions of Reed’s per- Murday said. want this size room, this vaudeville formance at Encore! He has taken advantage of his feeling, this same exact show per small size by beginning to book say, all in their hotels,” Reed said. more private showings, which has Since he owns the rights to many proven lucrative, and a niche that he of his illusions and has made a lot can fill with his smaller theater. He of his magic up on his own, Reed explained that he has noticed that would continue his “baby,” which while the Chinese and Korean cus- is his show at the Fiesta, but would tomers prefer the big theaters and also fly out to those locations to re- big magic, the Japanese customers produce the show and direct good prefer the intimate setting. “If you entertainers to be able to run it have a company party for 20, 30 or themselves. Nothing is finalized, 40 people, at the Sandcastle they’re Reed said, but the prospect is very one of 500 … here they can have a exciting for Encore! private show — and the Japanese To top off the changes already love the close up,” he said. happening at Magic Rocks, the show No one on island has it figured will be undergoing its most visible out yet, Reed said of the drastical- change yet on April 1, when it will Photo courtesy of Magic Rocks Photo courtesy ly changing market mix, but that be renamed and rebranded to Biba doesn’t mean they all aren’t seeing Magic! “We want to play in to that success. “It’s all new. Everything we more local flavor,” Murday said. The knew in the 90s? Throw it in the change will come with a totally new trash can. And start completely over. look, signs and advertisements, he You have to take risks and think out- said. More changes are in the works, side the box and try everything.” although he was not able to share All three of the shows performed additional details with the Journal at Nabil Murday of Magic Rocks performs for intimate groups of 40 or less in his theater at the by the magicians the Journal spoke press time. mbj Westin Guam Resort. Marianas Business Journal www.mbjguam.com February 4, 2019 - February 17, 2019 27

BRIEFCASE CONTINUED FROM PAGE 23 UOG releases corruption perception report The Boeing 777-200 will service MANGILAO, Guam — The two of three daily flights between University of Guam Regional Center Guam and Narita through March for Public Policy released Jan. 30 30. Being 737 aircraft will be used its findings in the first-ever Guam for all three daily flights during non- Corruption Perception Report. The peak season from April 1 through corruption measure for Guam is based July 31 and the Boeing 777 will be on data from a 2015 UOG survey and used once again on two of three dai- uses the corruption index and meth- of Guam of the University Photo courtesy ly flights beginning Aug. 1 through odology developed by Transparency the end of the winter season on International. March 30. The authors of the report are The Boeing 777 aircraft will offer Maria Claret Ruane, professor of eco- about 900 daily seats each way be- nomics of the School of Business and tween Tokyo and Guam. Administration at UOG; Gena Rojas, assistant professor of Community Guam Chamber Women’s Business Development; Luisa Tenorio, alumna Network to hold job fair of UOG; Daniel Cayanan; Jun Patrick HAGÅTÑA, Guam — The Guam Salalila; and Christian Valencia, all Maria Claret Ruane, professor of economics of the School of Business and Chamber of Commerce Women’s students at UOG. Administration at UOG, presented the corruption measure for Guam at a Jan. 30 press conference. Business Network will be holding its 4th annual job fair at the Hyatt Regency Guam on Feb. 8, according to a Jan. 19 release. The job fair will also feature presentations on top- ics such as how to close the skills gap and how to cultivate talent. The Women’s Business Network is a Guam Chamber of Commerce program that aims to bring professional women together once a quarter to enhance personal and professional growth.

NMI public works to break ground on Chalan Kalabera project GARAPAN, Saipan — The Northern Mariana Islands Department of Public Works is set to break ground on a project to construct 3.7 miles of all-weather road on Chalan Kalabera and Rte. 36 in the Talofofo area by mid-February, according to a Jan. 14 release. The improvements will include 12 and 11 foot-wide travel lanes, 5.5 foot wide shoulders and bike lanes on each side, roadside and road drain- age crossing and permanent traffic markers and signs. (See “Capitol improvements” in the April 3, 2017 issue of the Journal.) The project to improve the con- nection between the north and central parts of Saipan is almost 20 years old. Funds for the project were first appropriated in 2003.

Bank of Hawaii introduces online mortgage applications HONOLULU — Bank of Hawaii will now offer a fully integrated online mortgage application, according to a Jan. 24 release. The bank’s new digital platform is called SimpliFi Mortgage and is available to customers in Guam and Hawaii. The system also allows direct online communication with the bank’s residential loan officers.mbj 28 February 4, 2019 - February 17, 2019 www.mbjguam.com Marianas Business Journal Marianas Business Journal Datawww.mbjguam.com Bank February 4, 2019 - February 17, 2019 29 Information you can use to build your business mbjguam.com

GUAM’S EMPLOYMENT BY SECTOR, 2010-2018

Source: Guam Department of Labor - Bureau of Labor Statistics (2018, Mar. 20) CES Historical Table

GUAM’S JOB GROWTH, 2010-2018

Source: U.S. Department of Commerce - Bureau of Economic Analysis (2018, Nov. 13)

GUAM’S TAX REVENUES, FISCAL 2008-FISCAL 2019

Source: Guam Department of Labor - Bureau of Labor Statistics (2018, Mar. 20) CES Historical Table

GUAM’S INFLATION RATE, 2010-2018

Source: Guam Office of Public Accountability (various fiscal years) Our Report To Our Citizens

Source: Bureau of Statistics and Plans (2018 3rd Quarter) Guam Consumer Price Index

Source: Mariana Business Journal (2017 January 23)

Source: Guam Hotel and Restaurant Association, Summary Statistical Report Source: Guam Visitors Bureau, Visitors Statistics, Dec. 2013-2017 All charts sourced from the University of Guam 2018 Guam Economic Report 30 February 4, 2019 - February 17, 2019 Datawww.mbjguam.com Bank Marianas Business Journal Information you can use to build your business mbjguam.com

Northern Mariana Islands vehicle sales and market share report for October Year-to-date Monthly sales figures Monthly totals Same month last year Year-to-date sales figures totals Last year-to-date Manufacturer Car Truck Van SUV Other Month % SMLY % +/-% Car Truck Van SUV Other YTD % LYTD % +/-% Joeten Motors Nissan 1 9 11 21 14.00 10 5.41 110.00 11 86 5 51 153 10.73 141 7.58 8.51 Ford 1 2 3 2.00 2 1.08 50.00 4 7 20 3 34 2.38 64 3.44 -46.88 Used Month YTD Honda 7 7 14 9.33 17 9.19 -17.65 58 2 6 59 125 8.77 104 5.59 20.19 Sales 14 115 Kia 8 4.32 -100.00 20 23 43 3.02 87 4.68 -50.57 Share 40.0 30.6 Other Dealer totals 8 10 2 18 38 25.33 37 20.00 2.70 93 95 31 136 355 24.89 396 21.30 -10.35 Atkins Kroll (Saipan) Toyota 17 30 1 21 69 46.00 84 45.41 -17.86 225 226 22 194 667 46.77 928 49.92 -28.13 Chevrolet 1 1 0.07 1 0.05 Used Month YTD Scion Sales 9 163 Lexus 1 4 5 0.35 9 0.48 -44.44 Share 25.7 43.4 Other Dealer totals 17 30 1 21 69 46.00 84 45.41 -17.86 226 226 22 199 673 47.19 938 50.46 -28.25 Triple J Motors Hyundai 5 5 3.33 28 15.14 -82.14 44 70 114 7.99 212 11.40 -46.23 Mazda 17 8 25 16.67 31 16.76 -19.35 142 93 235 16.48 278 14.95 -15.47 Used Month YTD Mitsubishi 8 5 13 8.67 5 2.70 160.00 26 15 41 2.88 35 1.88 17.14 Sales 12 98 Isuzu Share 34.3 26.1 Other 8 8 0.56 Dealer totals 25 18 43 28.67 64 34.59 -32.81 212 178 8 398 27.91 525 28.24 -24.19 Total used car sales Used Month YTD Car Truck Van SUV Other Month % SMLY % +/-% Car Truck Van SUV Other YTD % LYTD % +/-% Total 35 376 50 40 3 57 150 100 185 100 -18.92 531 321 53 513 8 1426 100 1859 100 -23.29

Northern Mariana Islands vehicle sales and market share report for November Year-to-date Monthly sales figures Monthly totals Same month last year Year-to-date sales figures totals Last year-to-date Manufacturer Car Truck Van SUV Other Month % SMLY % +/-% Car Truck Van SUV Other YTD % LYTD % +/-% Joeten Motors Nissan 2 19 1 11 33 14.54 6 4.55 450.00 13 105 6 62 186 11.25 147 7.38 26.53 Ford 3 2 5 2.20 3 2.27 66.67 4 10 20 5 39 2.36 67 3.37 -41.79 Used Month YTD Honda 1 3 2 6 2.64 6 4.55 59 5 6 61 131 7.92 110 5.52 19.09 Sales 7 122 Kia 8 8 3.52 9 6.82 -11.11 28 23 51 3.09 96 4.82 -46.88 Share 20.6 29.8 Other Dealer totals 11 25 1 15 52 22.91 24 18.18 116.67 104 120 32 151 407 24.62 420 21.09 -3.10 Atkins Kroll (Saipan) Toyota 43 36 3 29 111 48.90 61 46.21 81.97 268 262 25 223 778 47.07 989 49.67 -21.33 Chevrolet 1 1 0.06 1 0.05 Used Month YTD Scion Sales 18 181 Lexus 1 1 0.44 1 0.76 1 5 6 0.36 10 0.50 -40.00 Share 52.9 44.1 Other Dealer totals 43 36 3 30 112 49.34 62 46.97 80.65 269 262 25 229 785 47.49 1000 50.23 -21.50 Triple J Motors Hyundai 15 15 6.61 18 13.64 -16.67 44 85 129 7.80 230 11.55 -43.91 Mazda 25 17 42 18.50 24 18.18 75.00 167 110 277 16.76 302 15.17 -8.28 Used Month YTD Mitsubishi 5 1 6 2.64 4 3.03 50.00 31 16 47 2.84 39 1.96 20.51 Sales 9 107 Isuzu Share 26.5 26.1 Other 8 8 0.48 Dealer totals 30 33 63 27.75 46 34.85 36.96 242 211 8 461 27.89 571 28.68 -19.26 Total used car sales Used Month YTD Car Truck Van SUV Other Month % SMLY % +/-% Car Truck Van SUV Other YTD % LYTD % +/-% Total 34 410 84 61 4 78 227 100 132 100 71.97 615 382 57 591 8 1653 100 1991 100 -16.98

Northern Mariana Islands vehicle sales and market share report for December Year-to-date Monthly sales figures Monthly totals Same month last year Year-to-date sales figures totals Last year-to-date Manufacturer Car Truck Van SUV Other Month % SMLY % +/-% Car Truck Van SUV Other YTD % LYTD % +/-% Joeten Motors Nissan 1 16 18 35 19.13 19 10.86 84.21 14 121 6 80 221 12.04 166 7.66 33.13 Ford 1 5 6 3.28 4 2.29 50.00 5 10 25 5 45 2.45 71 3.28 -36.62 Used Month YTD Honda 8 3 3 14 7.65 21 12.00 -33.33 67 8 6 64 145 7.90 131 6.05 10.69 Sales 20 142 Kia 6 1 7 3.83 5 2.86 40.00 34 24 58 3.16 101 4.66 -42.57 Share 40.8 30.9 Other Dealer totals 16 19 5 22 62 33.88 49 28.00 26.53 120 139 37 173 469 25.54 469 21.65 Atkins Kroll (Saipan) Toyota 20 25 1 29 75 40.98 79 45.14 -5.06 288 287 26 252 853 46.46 1068 49.31 -20.13 Chevrolet 1 1 0.05 1 0.05 Used Month YTD Scion Sales 19 200 Lexus 1 1 0.55 2 1.14 -50.00 1 6 7 0.38 12 0.55 -41.67 Share 38.8 43.6 Other Dealer totals 20 25 1 30 76 41.53 81 46.29 -6.17 289 287 26 259 861 46.90 1081 49.91 -20.35 Triple J Motors Hyundai 8 8 4.37 16 9.14 -50.00 44 93 137 7.46 246 11.36 -44.31 Mazda 10 13 23 12.57 21 12.00 9.52 177 123 300 16.34 323 14.91 -7.12 Used Month YTD Mitsubishi 3 11 14 7.65 8 4.57 75.00 34 27 61 3.32 47 2.17 29.79 Sales 10 117 Isuzu Share 20.4 25.5 Other 8 8 0.44 Dealer totals 13 32 45 24.59 45 25.71 255 243 8 506 27.56 616 28.44 -17.86 Total used car sales Used Month YTD Car Truck Van SUV Other Month % SMLY % +/-% Car Truck Van SUV Other YTD % LYTD % +/-% Total 49 459 49 44 6 84 183 100 175 100 4.57 664 426 63 675 8 1836 100 2166 100 -15.24 Source: Commonwealth Auto Dealer's Association Marianas Business Journal www.mbjguam.com February 4, 2019 - February 17, 2019 31 Data Bank Information you can use to build your business mbjguam.com

Top 20 Commodities Exported from Guam Octover — December 2018 Country of origin Commodity Dollars($) FSM Hong Kong Japan Marshall Palau All others Islands PUBLISHER Maureen N. Maratita Tobacco, Cigars, Cigarettes 2,207,334 1,994,590 134,702 70,454 7,588 and Cigarillos BUSINESS EDITOR Beer Made From Malt 1,242,650 804,347 346,697 14,197 77,409 Meghan Hickey Perfumes and Toilet Waters 1,188,934 712,269 110,939 365,726 REPORTERS Fish, Live, Chilled or Frozen 898,785 898,785 0 John I. Borja Wrist-Watches, Pocket 842,279 805,321 36,958 Wayne Chargualaf Watches or Other JAPAN CORRESPONDENT Motor Cars Designed for 718,820 548,732 106,589 63,499 Julian Ryall Transport of Persons Ethyl Alcohol, Undenatured, 259,828 110,435 49,677 93,460 6,256 MARSHALL ISLANDS CORRESPONDENT Liqueurs and Other Giff Johnson Petroleum Oils and Gases 180,537 91,497 61,600 27,440 PALAU CORRESPONDENT Trunks, Suitcases and other 127,905 120,612 7,293 Bernadette H. Carreon Similar Bags

CREATIVE CONTENT MANAGER Carton Boxes of Paper 124,275 124,275 Vikki Fong Water, Containing Sugar 104,785 92,780 12,005 Manufactured Tobacco and 59,129 59,129 0 DESIGN & PRODUCTION Tobacco Substitute Conrad Calma Keisha Marie Gozum Aluminum Waste, Scraps, 58,400 26,400 32,000 Luisa Joy Castro Tubes or Fittings Copper, Stranded Wire, 57,900 57,900 MEDIA SALES MANAGER Waste and Scrap Kevin Iwashita Imitation Jewelry 49,198 49,198 0 MEDIA SALES New Pneumatic Tires or 45,891 33,085 12,806 Vince Guerrero Rubber Troy A. White Lead, Waste and Scrap 36,520 36,520 ADMINISTRATION Tractors 26,000 26,000 0 Janice Castro Automatic Data Processing 23,651 14,744 8,907 Carmelita McClellan Parts Jenalyn Aguon Tubes, Pipes, Hoses and 23,370 23,370 0 DIRECTOR OF GLIMPSES MEDIA Fittings of Plastics Ken Duenas Source: Guam Bureau of Statistics and Plans

MANAGING DIRECTOR Marcos W. Fong Tourism arrivals December Percent change from Marianas Business Journal, Volume 16, Number 20 — February Latest month Previous month Previous year last year 4, 2019. Entire contents copyrighted 2019 by Glimpses of Guam Inc. Marianas Business Journal is published biweekly by Glimpses Guam visitors 146,104 132,850 (Nov.) 140,918 3.7% of Guam Inc. 161 US Army Juan C. Fejeran St., Barrigada Heights, Saipan visitors 26,600 5,461 (Nov.) 57,077 -53.4% Guam 96913. (671) 649-0883; Fax (671) 649-8883. POSTMASTER: Send address changes to Marianas Business Journal, P.O. Box 3191, Rota visitors 231 134 (Nov.) 254 -9.1% Hagåtña, Guam 96932. Send e-mail to glimpses@glimpsesofguam. Palau visitors 6,983 5,905 (Nov.) 9,761 -28.5% com. All rights reserved. Subscriptions, 6 months $60 1 year $120. Payment must accompany order. No material may be printed in part Hotel occupancy or in whole without written permission from the publisher. Printed by Guam Daily Post LLC, on Guam, contact Marianas Business Latest month Previous month Previous year YTD average Journal at Glimpses of Saipan Inc., 2nd Floor Transpac Business Guam 88.50% 87% (Nov.) 86.80% 86.5% Center, Middle Road, Gualo Rai, Saipan, MP 96950, or call (670) 235-7645; Fax (670) 234-1801. Send e-mail to subscriptions@ NMI 78.3% 60.3% (Nov.) 90.76% 82.1% glimpsesofguam.com. Average room rates

Percent change Latest month Previous month Previous year from last year YTD average

Guam $225.36 $188.35 (Nov.) $228.57 -4.0% $205.25 NMI $139.72 $132.91 (Nov.) $153.46 -9.0% $150.86 Sources: Guam Visitors Bureau, Marianas Visitors Authority, Palau Visitors Authority, Guam Hotel & Restaurant Association, Hotel Association of the Northern Mariana Islands

Glimpses Media include Guam Business Magazine, Marianas Business Journal, MBJ Life, Beach Road Magazine, Buenas, The Real Estate Journal and Drive Guam.

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