Property For Guam School, DOE Could Cost $257 Million Audit looks at cost, 26 years of expenses, tax credits for Tiyan HAGÅTÑA, Guam (Pacific Daily News, Dec. 25, 2014) – A former military barracks and office complex the government of Guam owned, gave away and later bought from a private investor could set back GovGuam about $256.9 million over the next 26 years, the draft of a government audit report shows. That amount will be on top of $4.7 million in cash and $21.5 million in tax credits that GovGuam has paid for the lease of the same renovated property at Tiyan over the past several years, the draft audit report shows. With GovGuams past and future tax credit payments to seller Core Tech International Corp., the local government could potentially forgo about $278 million in business privilege tax cash collections, the draft audit report, submitted on Dec. 3 to the Legislature, states. The price tag for GovGuams purchase of Tiyan includes the campus for Tiyan High School and the buildings that house Guam Department of Education offices. With annual principal and interest payments, collateral equipment acquisition and insurance and maintenance costs factored in, the draft audit report states, we found Tiyan campus to be the most costly compared to five other public schools. John F. Kennedy High School, Okkodo High School, Astumbo Middle, Adacao Elementary and Liguan Elementary also were financed through similar lease-to-purchase agreements that include insurance and maintenance, the draft report states. While GovGuam has committed to pay about $10 million in tax credits to Core Tech over the next two-and-a-half decades, Core Tech can sell part of its tax credits to other entities that owe business taxes to GovGuam, the draft audit report shows.
Posted on: Thu, 25 Dec 2014 06:16:17 +0000
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