Legislative Findings and Policies

I Liheslaturan Guåhan finds that there is a critical shortage of public school facilities on Guam. Many existing facilities are antiquated and are not fit for the purpose of public education. The Department of Education is in need of at least three

(3)new public schools with all the related civil and structural facilities and amenities customarily associated with a first rate public education facility. Specifically, there is an immediate need to replace the John F. Kennedy

(JFK)High School in Tumon, Guam and to build a modern facility on the site of the existing school. In an effort to overcome these financing hurdles and to provide for the educational needs of the students of Guam, I Liheslaturan COL5/19/2021 CH. 58A - Ma Kåhat Act of 2008 Guåhan desires to authorize the government of Guam to enter into contracts for the financing, design, construction and long-term capital maintenance of the John F. Kennedy High School with private sector contractors who can provide long-term financing obtained through taxexempt obligations or other competitive alternative financing based on long-term lease-backs to the government of Guam. These projects will constitute the first phase of a capital improvement plan approved by I Liheslaturan Guåhan to address Guam’s long term education, health, public safety and governmental needs. To facilitate the financing, design, construction and maintenance of the facilities envisioned by this Act, the government of Guam will be authorized to lease for up to thirty

(30)years government of Guam property on which the facilities will be constructed. The lease of the government property will be to the contractor, who will design and construct the facilities in accordance with specifications approved by Department of Education, and provide funding for the design and construction through the use of tax-exempt obligations or other competitive alternative funding sources. The facilities and land will be leased back to the government of Guam for a period not to exceed the initial ground lease to the contractor over which time the government of Guam will amortize, as lease payments to the contractor, the cost of the financing, design, construction and related expenses of the facilities. The annual commitment of Section 30 Revenues authorized in the Act is based on the sum of Section 30 Revenue available after the final payment on the Government of Guam Limited Obligation (Section 30) Bonds, Series 2001A. The contractor will also be responsible for the capital maintenance of the public school facilities constructed under this Act, which costs shall be paid by the government of Guam as provided for under this Act. At the expiration of the Lease-Back Period, the government of Guam real property and the public facilities constructed on the government of Guam real property will revert to the government of Guam with no further obligations to the Contractor.