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BY OYAOL NGIRAIRIKL
Journal Staff
January 2024
Back to the drawing board: legal issues could stop inmate transfers
A potential solution of moving inmates from crowded Guam Department of Corrections to facilities in Northern Mariana Islands drew concern from the Guam Public Defender Service Corp. Stephen Hattori, executive director for the Public Defender, said inmates have certain legal rights. The U.S. Constitution’s Eighth Amendment protects prisoners against involuntary/non disciplinary out of state transfers.
A group from Guam, representing DOC, the governor’s office, Department of Youth Affairs and other offices met with NMI officials in Saipan Dec. 6, 2023. Fred Bordallo, DOC director, told the Journal the purpose of the trip was to “look at the facilities and engage in conversations, answer questions, and listen to the concerns and reactions of the community —especially with people hearing about the possibilities of Guam prisoners coming over to Saipan and how that would look like.”
February 2024
Data developments: center to meet growing needs
The Guam Exchange is establishing a Tier III Data Center that aims to enhance Guam's strategic position as a hub for fiber optic subsea cables. The initial phase would cover 8,000 square feet at the IT&E property in Harmon and will operate as an independent entity fully owned by Citadel Pacific Ltd., which is investing over $20 million into the project.
L. James Beighley, CEO of Citadel, emphasized the significance of the data center. “It becomes a critical data communications hub.” The facility aims to be open access and carrier neutral, catering to both commercial and federal needs while attracting international investment.
March 2024
Change on the way: Guam to see new military command, increased presence
Rear Adm. Gregory C. Huffman said that “2024 is going to be a very exceptional year. There are a lot of changes happening …All of those are going to result in an increase in the progress that we’re going to make for setting the posture the right way.”
“Under our current portfolio here at Joint Region Marianas, we have responsibility for Palau and for FSM. At this point we don’t have responsibility for the Marshall Islands. There is a plan for the future that that will come under our cognizance, but not directly for Joint Region Marianas. It will be part of Joint Task Force Micronesia, which is the new staff that is being stood up,” he said. “This is a recognition by the leadership at INDOPACOM (the U.S. Indo-Pacific Command) that we need to make sure that we have a forward presence and an operationally minded staff that is ready at a moment’s notice to take command and control of any operational assets that are here in the region and also eventually have control of the Guam defense system.”
April 2024
Leaping forward: New hotels on Palau’s horizon
The landscape of Palau’s hotel industry is expected to widen significantly with four companies building hotels of global repute, investing hundreds of millions of dollars in construction, and bringing jobs to Palau.
Minister Ngiraibelas Tmetuchl of the Ministry of Human Resources, Culture, Tourism and Development said these and other hotels that have either been built or are also in the works are important to Palau. These new hotels push Palau toward the goal of welcoming high-end visitors. The island nation endeavours to protect its environment and tourism against mass market tourists.
IHC Hotel Ltd., which does business as the Hotel Indigo Palau, is investing more than $100 million in the construction of a 187-room hotel. The Wanjin Palau Development Co., which does business as the Marriott Hotel, is investing about $30 million in a 120-room and 20-bungalow hotel. Palau Majesty Development, which does business as the Sheraton, was anticipated to invest approximately $200 million on a 154-room hotel in the summer. The Leisure Development Koror Inc., which does business as the Four Seasons, has been stalled by a property dispute but according to government officials, that is nearing a resolution as of the time of this writing. The company’s famous liveaboard, the 128-foot Four Seasons Explorer, has been consistently booked since opening in 2023.
May 2024
A man with missions: Navy under secretary shares road ahead
Undersecretary of the Navy Erik K. Raven reiterated the strategic importance of Guam and ongoing military construction efforts in an interview with the Journal. Raven's dual role involves focusing on Guam's installations while overseeing broader Navy operations in the Indo-Pacific. He underscored the importance of collaboration with allies and partners to enhance regional security and operational capabilities.
Guam, he said, is crucial for U.S. military operations in the Indo-Pacific, serving as a base for deterrence and conflict readiness. He also highlighted the need for coordinated planning among military branches to enhance capabilities on the island, particularly regarding the Marine Corps realignment and the development of Camp Blaz.
Raven acknowledged congressional support for funding and authorities necessary for construction projects, noting that partnerships with local leaders are vital for progress. He mentioned several initiatives underway, including improvements at Andersen Air Force Base and the Guam Defense System, which aim to bolster military readiness.
June 2024
Oorah: Next batch of Marines to arrive in December
About 105 U.S. Marines were set to arrive in Guam at the end of December, according to Vera Topasña, executive director of the Government of Guam’s Community Defense Liaison Office. These Marines will be logistics personnel and will join fewer than 100 personnel already stationed at Camp Blaz.
The relocation is part of a larger plan to move approximately 5,000 Marines from Okinawa to Guam, with an incremental approach to ensure operational capabilities remain intact. Topasña noted that while there are no special events planned for the December arrival, further increases in personnel are expected in subsequent years.
Infrastructure improvements are also underway on the island, supported by various community programs and grants. Concerns regarding environmental and cultural impacts have been raised by local activists, but Topasña reassured that stewardship remains a priority as the Marines relocate. The administration aims to ensure that community integration and workforce development strategies are promoted alongside military growth.
July 2024
New rule, new realities: Real estate decision affects Guam buyers
Christopher K. Felix, president of Century 21 Realty Management Company Inc., said commission details will no longer be displayed in Multiple Listing Services (MLS), requiring agents to negotiate commissions directly with listing agents for each property.
The change is part of a jury decision in a Missouri case against the National Association of Realtors. The main issue in this case was NAR’s rules requiring home sellers to agree to certain practices regarding commission rates, making it harder for sellers’ brokers to negotiate commission rates with the sellers’ brokers. The argument was made that this practice made commission rates higher than they should be. The jury found that these rules artificially limited competition, leading to financial losses for home sellers over several years.
As a result, new rules aimed at enhancing transparency and fairness regarding commission practices were effective Aug. 17, 2024. In addition, buyers must now sign a buyer’s representation agreement before viewing properties, ensuring they are aware of their commission obligations. Felix expressed concerns that these changes complicate the buying process, as agents will need to establish new procedures and renegotiate deals if sellers are unwilling to cover buyer agent commissions.
August 2024
Tap, tap — who’s there? Contactless payments in the Mariana Islands
The increasing number of companies offering contactless payments available in Guam and the Northern Mariana Islands has been a quiet commercial revolution. Consumers appreciate the speed, convenience, and security of contactless payments, especially in the post-pandemic landscape.
Despite the growing acceptance, many businesses do not actively promote their contactless payment options. And the experience with contactless payments varies among merchants. Some establishments require signatures for transactions, while others do not.
Security concerns persist, but experts highlight that contactless transactions use unique codes and limited transmission distances, making them safe. Financial institutions like Community First Guam Federal Credit Union and Bank of Guam are responding to consumer demand for contactless options, with the latter issuing contactless credit and debit cards since 2018.
September 2024
High times: regional airports look to rise
Airports across Micronesia, including Palau, Guam, Saipan, and the Marshall Islands, are working to modernize while addressing shared challenges such as recovering pre-pandemic aircraft operations, financial strain, high improvement costs due to remoteness, and staffing shortages.
Capital improvement projects were priorities for these airports, which officials said are necessary to support their respective communities. Airports in these islands not only support tourism but other businesses and the overall economy, as well as healthcare services, particularly given the limited availability of certain medical expertise and equipment in the region.
The Federal Aviation Administration provides critical support to the region through federal funding, technical assistance, and oversight. This includes programs like the Airport Improvement Program, funding from the Bipartisan Infrastructure Law, and services outlined in the Compact of Free Association agreements. The FAA also assists with airport planning, design, construction, and aviation safety while ensuring compliance with International Civil Aviation Organization standards.
To foster collaboration, the FAA hosts an annual Aerodrome Workshop, which promotes knowledge-sharing among regional airports. The next workshop is scheduled for April 2025 in Saipan.
October 2024
A unique organization: GUMA makes a difference to startups
Founded in 2013 through a collaboration between DFS Guam and Galaide Group LLC, Guam Unique Merchandise and Arts (GUMA) is a non-profit organization dedicated to supporting startup small businesses, particularly artists and creative entrepreneurs.
The organization aims to help individuals develop sustainable businesses. GUMA has facilitated the growth of 751 participants through its I Bisinun Mami and Training and Mentoring programs, awarding 82 micro-grants and over $1.2 million in startup funding. The organization has incubated 50 businesses, including clothing shops and automotive services, with 42 still operational despite challenges like the COVID-19 pandemic.
Success stories include Leche Drip, a streetwear brand founded by Sidney Acosta, and It Takes a Village, a baby thrift store owned by Angelica Rabino. Both women benefited from GUMA's Training and Mentoring program, which provided essential business skills and funding. Acosta received $9,590 to enhance her inventory, while Rabino was awarded $12,775 to cover rent and stock her shop. Despite their successes, new businesses face challenges such as upfront costs and navigating legal and accounting frameworks.
November 2024
Do you know where you live: Guam’s digital and historic numbering problems
Nearly a year and a half after Typhoon Mawar struck Guam on May 24, 2023, many street signs and traffic lights remain unreplaced, causing navigation difficulties for residents and visitors.
VIncent P. Arriola, director of the Department of Public Works, reported at an Oct. 10 legislative hearing that over 1,800 signs were damaged or missing due to the typhoon, and funding has been secured from the Federal Highway Administration for repairs.
In addition to signage issues, Patricia Feore, a realtor with ReMax Diamond Realty, highlighted problems with house numbering inconsistencies stemming from DPW's digitization efforts. These discrepancies have led to postal delays and complications with official services like court filings and mortgage approvals. Feore noted that outdated addresses continue to be used by utility companies, creating further confusion, especially for military housing where accurate addresses are crucial for business license applications.
December 2024
No Ho, Ho, Ho: Retail outlook is somber
The holiday outlook for local retailers wasn’t as bright as many hoped for, standing in stark contrast to national spending. According to the National Retail Federation, Americans were expected to spend between $979 billion and $989 billion during November and December in 2024, with average spending for gifts and other holiday-related items expected to amount to $902 per consumer.
Locally, larger stores with a range of products may fare better, but for niche retailers the going is tough. And for retailers who do business in Guam and the islands — particularly smaller businesses, the picture is not consistently bright as the holiday season settles in.
Retailers like Gemkell Corp. face difficulties due to low visitor arrivals, high foreign currency rates, and cautious spending habits among tourists. General manager Angie K. Saad noted that while larger stores might perform better, smaller businesses are struggling significantly.
While some stores like Threads Guam are seeing slight improvements in foot traffic and online sales during the holidays, overall spending remains lower than in previous years. The article highlights that customers are now more inclined to purchase affordable items rather than luxury goods.
Some retailers have adjusted their sales tactics. For instance, Twinkles toy store started offering discounts earlier than usual but still reported a decline in overall sales compared to last year. mbj
BY OYAOL NGIRAIRIKL
Journal Staff
January 2024
Back to the drawing board: legal issues could stop inmate transfers
A potential solution of moving inmates from crowded Guam Department of Corrections to facilities in Northern Mariana Islands drew concern from the Guam Public Defender Service Corp. Stephen Hattori, executive director for the Public Defender, said inmates have certain legal rights. The U.S. Constitution’s Eighth Amendment protects prisoners against involuntary/non disciplinary out of state transfers.
A group from Guam, representing DOC, the governor’s office, Department of Youth Affairs and other offices met with NMI officials in Saipan Dec. 6, 2023. Fred Bordallo, DOC director, told the Journal the purpose of the trip was to “look at the facilities and engage in conversations, answer questions, and listen to the concerns and reactions of the community —especially with people hearing about the possibilities of Guam prisoners coming over to Saipan and how that would look like.”
February 2024
Data developments: center to meet growing needs
The Guam Exchange is establishing a Tier III Data Center that aims to enhance Guam's strategic position as a hub for fiber optic subsea cables. The initial phase would cover 8,000 square feet at the IT&E property in Harmon and will operate as an independent entity fully owned by Citadel Pacific Ltd., which is investing over $20 million into the project.
L. James Beighley, CEO of Citadel, emphasized the significance of the data center. “It becomes a critical data communications hub.” The facility aims to be open access and carrier neutral, catering to both commercial and federal needs while attracting international investment.
March 2024
Change on the way: Guam to see new military command, increased presence
Rear Adm. Gregory C. Huffman said that “2024 is going to be a very exceptional year. There are a lot of changes happening …All of those are going to result in an increase in the progress that we’re going to make for setting the posture the right way.”
“Under our current portfolio here at Joint Region Marianas, we have responsibility for Palau and for FSM. At this point we don’t have responsibility for the Marshall Islands. There is a plan for the future that that will come under our cognizance, but not directly for Joint Region Marianas. It will be part of Joint Task Force Micronesia, which is the new staff that is being stood up,” he said. “This is a recognition by the leadership at INDOPACOM (the U.S. Indo-Pacific Command) that we need to make sure that we have a forward presence and an operationally minded staff that is ready at a moment’s notice to take command and control of any operational assets that are here in the region and also eventually have control of the Guam defense system.”
April 2024
Leaping forward: New hotels on Palau’s horizon
The landscape of Palau’s hotel industry is expected to widen significantly with four companies building hotels of global repute, investing hundreds of millions of dollars in construction, and bringing jobs to Palau.
Minister Ngiraibelas Tmetuchl of the Ministry of Human Resources, Culture, Tourism and Development said these and other hotels that have either been built or are also in the works are important to Palau. These new hotels push Palau toward the goal of welcoming high-end visitors. The island nation endeavours to protect its environment and tourism against mass market tourists.
IHC Hotel Ltd., which does business as the Hotel Indigo Palau, is investing more than $100 million in the construction of a 187-room hotel. The Wanjin Palau Development Co., which does business as the Marriott Hotel, is investing about $30 million in a 120-room and 20-bungalow hotel. Palau Majesty Development, which does business as the Sheraton, was anticipated to invest approximately $200 million on a 154-room hotel in the summer. The Leisure Development Koror Inc., which does business as the Four Seasons, has been stalled by a property dispute but according to government officials, that is nearing a resolution as of the time of this writing. The company’s famous liveaboard, the 128-foot Four Seasons Explorer, has been consistently booked since opening in 2023.
May 2024
A man with missions: Navy under secretary shares road ahead
Undersecretary of the Navy Erik K. Raven reiterated the strategic importance of Guam and ongoing military construction efforts in an interview with the Journal. Raven's dual role involves focusing on Guam's installations while overseeing broader Navy operations in the Indo-Pacific. He underscored the importance of collaboration with allies and partners to enhance regional security and operational capabilities.
Guam, he said, is crucial for U.S. military operations in the Indo-Pacific, serving as a base for deterrence and conflict readiness. He also highlighted the need for coordinated planning among military branches to enhance capabilities on the island, particularly regarding the Marine Corps realignment and the development of Camp Blaz.
Raven acknowledged congressional support for funding and authorities necessary for construction projects, noting that partnerships with local leaders are vital for progress. He mentioned several initiatives underway, including improvements at Andersen Air Force Base and the Guam Defense System, which aim to bolster military readiness.
June 2024
Oorah: Next batch of Marines to arrive in December
About 105 U.S. Marines were set to arrive in Guam at the end of December, according to Vera Topasña, executive director of the Government of Guam’s Community Defense Liaison Office. These Marines will be logistics personnel and will join fewer than 100 personnel already stationed at Camp Blaz.
The relocation is part of a larger plan to move approximately 5,000 Marines from Okinawa to Guam, with an incremental approach to ensure operational capabilities remain intact. Topasña noted that while there are no special events planned for the December arrival, further increases in personnel are expected in subsequent years.
Infrastructure improvements are also underway on the island, supported by various community programs and grants. Concerns regarding environmental and cultural impacts have been raised by local activists, but Topasña reassured that stewardship remains a priority as the Marines relocate. The administration aims to ensure that community integration and workforce development strategies are promoted alongside military growth.
July 2024
New rule, new realities: Real estate decision affects Guam buyers
Christopher K. Felix, president of Century 21 Realty Management Company Inc., said commission details will no longer be displayed in Multiple Listing Services (MLS), requiring agents to negotiate commissions directly with listing agents for each property.
The change is part of a jury decision in a Missouri case against the National Association of Realtors. The main issue in this case was NAR’s rules requiring home sellers to agree to certain practices regarding commission rates, making it harder for sellers’ brokers to negotiate commission rates with the sellers’ brokers. The argument was made that this practice made commission rates higher than they should be. The jury found that these rules artificially limited competition, leading to financial losses for home sellers over several years.
As a result, new rules aimed at enhancing transparency and fairness regarding commission practices were effective Aug. 17, 2024. In addition, buyers must now sign a buyer’s representation agreement before viewing properties, ensuring they are aware of their commission obligations. Felix expressed concerns that these changes complicate the buying process, as agents will need to establish new procedures and renegotiate deals if sellers are unwilling to cover buyer agent commissions.
August 2024
Tap, tap — who’s there? Contactless payments in the Mariana Islands
The increasing number of companies offering contactless payments available in Guam and the Northern Mariana Islands has been a quiet commercial revolution. Consumers appreciate the speed, convenience, and security of contactless payments, especially in the post-pandemic landscape.
Despite the growing acceptance, many businesses do not actively promote their contactless payment options. And the experience with contactless payments varies among merchants. Some establishments require signatures for transactions, while others do not.
Security concerns persist, but experts highlight that contactless transactions use unique codes and limited transmission distances, making them safe. Financial institutions like Community First Guam Federal Credit Union and Bank of Guam are responding to consumer demand for contactless options, with the latter issuing contactless credit and debit cards since 2018.
September 2024
High times: regional airports look to rise
Airports across Micronesia, including Palau, Guam, Saipan, and the Marshall Islands, are working to modernize while addressing shared challenges such as recovering pre-pandemic aircraft operations, financial strain, high improvement costs due to remoteness, and staffing shortages.
Capital improvement projects were priorities for these airports, which officials said are necessary to support their respective communities. Airports in these islands not only support tourism but other businesses and the overall economy, as well as healthcare services, particularly given the limited availability of certain medical expertise and equipment in the region.
The Federal Aviation Administration provides critical support to the region through federal funding, technical assistance, and oversight. This includes programs like the Airport Improvement Program, funding from the Bipartisan Infrastructure Law, and services outlined in the Compact of Free Association agreements. The FAA also assists with airport planning, design, construction, and aviation safety while ensuring compliance with International Civil Aviation Organization standards.
To foster collaboration, the FAA hosts an annual Aerodrome Workshop, which promotes knowledge-sharing among regional airports. The next workshop is scheduled for April 2025 in Saipan.
October 2024
A unique organization: GUMA makes a difference to startups
Founded in 2013 through a collaboration between DFS Guam and Galaide Group LLC, Guam Unique Merchandise and Arts (GUMA) is a non-profit organization dedicated to supporting startup small businesses, particularly artists and creative entrepreneurs.
The organization aims to help individuals develop sustainable businesses. GUMA has facilitated the growth of 751 participants through its I Bisinun Mami and Training and Mentoring programs, awarding 82 micro-grants and over $1.2 million in startup funding. The organization has incubated 50 businesses, including clothing shops and automotive services, with 42 still operational despite challenges like the COVID-19 pandemic.
Success stories include Leche Drip, a streetwear brand founded by Sidney Acosta, and It Takes a Village, a baby thrift store owned by Angelica Rabino. Both women benefited from GUMA's Training and Mentoring program, which provided essential business skills and funding. Acosta received $9,590 to enhance her inventory, while Rabino was awarded $12,775 to cover rent and stock her shop. Despite their successes, new businesses face challenges such as upfront costs and navigating legal and accounting frameworks.
November 2024
Do you know where you live: Guam’s digital and historic numbering problems
Nearly a year and a half after Typhoon Mawar struck Guam on May 24, 2023, many street signs and traffic lights remain unreplaced, causing navigation difficulties for residents and visitors.
VIncent P. Arriola, director of the Department of Public Works, reported at an Oct. 10 legislative hearing that over 1,800 signs were damaged or missing due to the typhoon, and funding has been secured from the Federal Highway Administration for repairs.
In addition to signage issues, Patricia Feore, a realtor with ReMax Diamond Realty, highlighted problems with house numbering inconsistencies stemming from DPW's digitization efforts. These discrepancies have led to postal delays and complications with official services like court filings and mortgage approvals. Feore noted that outdated addresses continue to be used by utility companies, creating further confusion, especially for military housing where accurate addresses are crucial for business license applications.
December 2024
No Ho, Ho, Ho: Retail outlook is somber
The holiday outlook for local retailers wasn’t as bright as many hoped for, standing in stark contrast to national spending. According to the National Retail Federation, Americans were expected to spend between $979 billion and $989 billion during November and December in 2024, with average spending for gifts and other holiday-related items expected to amount to $902 per consumer.
Locally, larger stores with a range of products may fare better, but for niche retailers the going is tough. And for retailers who do business in Guam and the islands — particularly smaller businesses, the picture is not consistently bright as the holiday season settles in.
Retailers like Gemkell Corp. face difficulties due to low visitor arrivals, high foreign currency rates, and cautious spending habits among tourists. General manager Angie K. Saad noted that while larger stores might perform better, smaller businesses are struggling significantly.
While some stores like Threads Guam are seeing slight improvements in foot traffic and online sales during the holidays, overall spending remains lower than in previous years. The article highlights that customers are now more inclined to purchase affordable items rather than luxury goods.
Some retailers have adjusted their sales tactics. For instance, Twinkles toy store started offering discounts earlier than usual but still reported a decline in overall sales compared to last year. mbj