Protest halts hotel occupancy tax bonds sale

by Mindy Aguon

Guam - The Guam Economic Development Authority hit a snag as they attempted to sell the government's hotel occupancy tax revenue bonds. Officials have been in New York this week pre-marketing the bonds with an investor presentation to seek interest from potential buyers.

GEDA acting administrator Karl Pangelinan says a procurement protest was filed that has delayed the sale of the bonds. A last-minute protest letter for award of trustee was received a day before GEDA officials went to price on the bond market. The sale was expected to generate more than $80 million that was going to be used to construct a Guam museum and cultural center and make improvements to various tourist attractions. 

The board is scheduled to meet next Friday to address the protest so the sale of the bonds can proceed once the issues are resolved.