SIFA status, landlord's collection effort still in limbo
The plight of Science is Fun and Awesome Learning Academy Charter School in Barrigada, as well as the plight of its landlord Eagle Land Holdings LLC. is still in limbo but could come to resolution soon.
At the root of the issue is that SIFA had a contract to occupy the property where their school campus sits, and even though the contract expired on June 30, 2023, the school continues to operate and occupy the land.
Eagle Land Holdings seeks to remove SIFA from the property because there is no contract in place for continued occupancy. Additionally, the landlord wants to collect on arrears and unpaid rent since the contract's end, to the tune of over $4 million. SIFA has neither left the property nor paid the amounts.
Attorney Michael Phillips, representing SIFA, argued that because SIFA receives its funding from the government, it is a government entity and therefore the landlord needed to seek payment via the government claims process.
Following arguments for and against, Superior Court Magistrate Judge R. Johnathan Quan issued its opinion that SIFA is not an entity of the government, and the landlord did not have to seek arrears through the Government Claims Act.
Phillips followed that with a motion to dismiss the case, arguing that the courts lacked jurisdiction, and that Guam law provided SIFA Inc. with immunity from lawsuits.
Through its counsel Jon Ramos, the landlord filed its opposition to the motion to dismiss. Ramos stated that his client has gone through all the compulsory steps needed to serve SIFA with notice to vacate the campus grounds. It also asserts it has followed proper procedure in its attempt to collect past-due rent.
Ramos has sought relief through Guam's unlawful detainer, or eviction, laws.
He said a lease was in place starting July 2018 through June 30, 2023, with an option to renew. But that option was never exercised, he said.
Based on the expired rental contract, the rent was $2.4 million per year, or about $134,400 per month.
Ramos has argued that forcing his client into a month-to-month contract that they do not want is unfair. He said notice was given to school officials on Feb. 17.
Phillips has until Monday, Nov. 18, to respond to the landlord's motion in opposition of SIFA's original motion to dismiss.
An evidentiary hearing is scheduled for 3:30 p.m. Friday, Nov. 22, in Quan's courtroom.
Eagle Land Holdings operates not just as landlord for the school, but also as a vendor providing various services, to include meals, internet, equipment, and maintenance, according to a copy of the lease agreement.
SIFA's charter to operate was extended for another six years this past March. With over 400 students and plans to expand grade levels, the school offers a curriculum focused on science, technology, engineering, art and math.
But issues with finances at this school were flagged as early as last year by the Office of Public Accountability, which found SIFA in debt by $1.2 million in fiscal 2022.
School leadership has sought forgiveness for its debts and support from the community and government.
