26 JANUARY 2010 SAIPAN ( SAIPAN TRIBUNE) ---- A Japan-based company is proposing to build a flight school and training center on the island and has asked the Commonwealth Ports Authority for space at the airport, according to executive director Edward Deleon Guerrero.

Deleon Guerrero told the CPA board that the company, doing business here as Island Aviation Corp., wants to lease space within CPA property for its proposed flight school, training center, and hangar. For the hangar alone, the firm wants to lease 33 x 33 meters space near the airport and additional space for the center and school.

Saipan Tribune learned that Takashi Hirata, the company's board secretary, formally approached CPA on Jan. 13 about its intention to lease space near the airport. Once they determine that the identified site is suitable for their needs, the company will submit all documents necessary to consummate the lease.

Mr Hirata described the proposal as both beneficial to the CNMI and the company.

Deleon Guerrero told the board he was pleased with the proposal and will review and analyze various options that could be presented to the company. As soon as possible locations are identified, he said he will immediately set up a meeting with the company.

CPA, he said, looks forward to the start of a new business relationship with Island Aviation Corp.

Deleon Guerrero was instructed by board members to expedite the review process for this potential revenue stream for CPA.

Saipan Tribune learned Island Aviation Corp. acquired a business license to build a flight school in the CNMI last Dec. 14, 2009. It has until December this year to build the flight school, based on the license permit. If the project pushes through, the company will be the first to set up an aviation school on island.

Another company, Star Marianas, also plans to widen its space within the airport premises for its proposed hangar as well as a classroom for a flight school.

Deleon Guerrero reported that he met with the company's representative, Robert Christiansen, who submitted intentions to lease the property currently being used by the CPA operations department.

He said Star Marianas wants to demolish the existing dilapidated building and use the site for an office space, hangar, and classroom for a flight school.

He said CPA will identify another site for the operations department if the Star Marianas proposal is approved.

'Firm offers $350K building to CPA'

CPA was also offered a $350,000 building located on CPA property after Tandem Skydive decided to shut down due to the declining economy and tourism.

According to the firm's stockholder, Joseph C. Reyes, they decided to sell the building since they see no promising possibilities in continuing their operations.

However, Deleon Guerrero told the board that the selling price is deemed too “high” for the CPA to consider. Skydive, he revealed, has 15 more years to its lease agreement with CPA.

Mr Guerrero said that the management will make a full review of the proposal and will present recommendations to the board at its next meeting.

He disclosed that the U.S. Division of Fish and Wildlife has already signified interest to lease the building at $9,000, including utilities.

“We will make a full assessment of this proposal to see whether it is good or not for CPA,” he told the board….PNS (ENDS)