Housing agency begins condemning private lands for hospital project
By Mar-Vic Cagurangan
Attorney General Douglas Moylan on Friday sought a court injunction against the Guam Housing and Urban Renewal Authority’s bid to seize private land in Mangilao, reiterating his earlier opinion that the agency’s “surreptitious” deal with the governor was riddled with legal anomalies.
Moylan sued GHURA and Gov. Lou Leon Guerrero in the District Court of Guam on the heels of the housing agency's move to initiate the condemnation of private properties targeted for a new hospital.
In a civil action filed in the Superior Court Wednesday, GHURA listed 169,795 sqm. of land for taking under eminent domain. The properties, estimated at $6.65 million combined, are owned by Hong Yi Inc., Dr. Joel Joseph and “other unknown owners.”
“The use for which the property is to be taken is for use as a site for a new hospital and medical complex and community development projects,” states GHURA's court filing “for the ascertainment of just compensation to the owners
and parties.”
GHURA started the landtaking process despite Moylan issuing a legal opinion warning that the questionable land condemnation was likely to spark costly litigation.
Moylan's petition in the federal court names the "government of Guam" as the lead plaintiff.
GHURA's proposed land acquisitions would be funded through the $12.5 million loan the governor has offered to the housing agency.
Moylan asked the federal court to nullify the lending agreement between GHURA and the governor, noting that the loan was to be drawn from Guam’s allocation under the State and Local Fiscal RecoveryFund— a Covid-related federal stimulus program authorized by the American Recovery Plan Act.
He alleged that the governor "has unlawfully exercised the legislature's appropriations authority" when she dipped her hands into the ARPA funds.
The attorney general sought injunctive relief to prohibit the governor from tapping into federal Covid funds without legislative appropriation, and to put the brakes on GHURA’s land acquisition “until authorized by the legislature” or “unless consistent with its purposes.”
“This proceeding implicates fundamental constitutional
questions of great public importance, including the separation
of powers, the balance of powers, and the legislature's power
to appropriate federal grant funds,” the complaint said.
In 2021, Guam received $553 million in state recovery grants. Moylan said the local treasury holds the remaining balance of $100 million.
“Upon information and belief, GHURA has borrowed $3.5 million to purchase
a vacant piece of land, identified as Lot 5280-3 in the municipality of Mangilao,” states Moylan’s complaint.
The property in question was owned by the late Catalina Camacho, and purchased from estate administrators Edward Camacho and Peter Manibusan through the brokerage firm Blue Water Realty.
While his request for an injunction didn't include “funds already appropriated by the governor,” Moylan asked the court to prohibit additional fund transfers from the ARPA account to GHURA.
The governor’s loan to GHURA came in two tranches. The agency accepted the first $10 million on May 28, and an additional $2.5 million on Nov. 26.
“The government of Guam, as a recipient or grantee, must comply with all
requirements for the expenditure of ARPA/SLFRF monies,” Moylan’s court filing states.
Moylan also reiterated the arguments stated in his Dec. 13 legal opinion, which pointed out that the backdoor deal between the governor and GHURA violated the open government law.
At each meeting, Moylan said no information was made available to the public regarding the loan's purpose.
The complaint also argued that the agency wrongly applied eminent domain
on pieces of real estate and projects outside of its limited authority delegated by the legislature.
“GHURA has no authority to acquire, construct, and provide for hospital facilities,” Moylan said.
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