Barangay chiefs ‘approve’ SRP lot deal
By Rene H. Martel
CEBU City Barangay officials gave their nod on the SM Prime Holdings Incorporated’s proposal to purchase 30 hectares of the South Road Properties (SRP) and invest P20 billion for a mall, hotels, convention center, school and a hospital.
Cebu City Mayor Tomas Osmeña consulted the barangay captains and their councilors because the SRP, is “not his but the people’s project.”
Osmeña said he wanted to speak with the barangay officials as he cannot inform all the Cebuanos. They could inform their constituents on what he told them, he said.
“Mohatag ko’g reminder nga ang tag-iya sa SRP dili si Mayor Tomas Osmeña kung dili ang mga tawo (I will give a reminder that the owner of SRP is not Mayor Tomas Osmeña but the people). I have to go through the final consultation. I cannot consult the whole of Cebu City, but kamo ang representative sa mga tawo (you are the representatives of the people),” he said.
“Kamo gyud ang tag-iya sa yuta (You own the land). I’m just an employee of the City Government. Naa koy sweldo (I’m paid), and that’s it. Wala koy bahin bisan usa ka metro kwadrado (I don’t have even a square-meter share). Wala koy bahin bisan one-half of one percent,” he said.
He met with the south district barangay officials in the morning and the north district barangay officials in the afternoon.
All those who showed up raised their hands when Osmeña asked who among them liked SM Prime Holding’s proposal.
The company intends to build a 25-hectare shopping mall, which is “twice” the size of SM Mall at the North Reclamation Area; convention facility with a minimum floor area of 20,000 square meters; and hotels.
It will also build later a school, a hospital, and high-rise condominiums.
According to the proposal, the minimum floor-to-area ratio “shall be subject to the joint determination and mutual agreement with Cebu City.”
“To further complement the commercial development, we intend to build more high-rise residential condominiums after five calendar years from the execution of this contract with Cebu City subject to market conditions,” said Hans T. Sy, SM Prime Holdings president.
“Construction will commence within eighteen (1
months from the completion of its first payment to Cebu City,” he said.
The company, though, has asked for a real property tax holiday during the construction and start-up phases of development as “investor’s incentive,” particularly a “five-year moratorium” reckoned from the time the titles are “completely” transferred to the company’s name.
Aside from SM, Bigfoot Entertainment is also interested in buying 4.6 hectares, after signing a 25-year lease agreement for two hectares in 2007.
Another investor, a Korean company, wants to buy five hectares for a hotel and a casino. The company, the mayor said, already got the approval of the Philippine Amusement and Gaming Corp. for the casino.
According to the proposal, SM will buy six lots consisting of 304,100 square meters (30.41 hectares) of the SRP worth either P11,000 per square meter or P8,000 per square meter.
Receipt
Sy said 25 percent (P672.475 million) of the payment would be given to the City within 15 days from their receipt of the notice of award from the City.
“(The) balance of the total bid price shall be paid on quarterly installments as per schedule of payments that may be set by Cebu City, which quarterly payments shall not exceed a period of six years from date of execution of (the) deed of sale on installment with an interest of 5 percent per annum on unpaid principal balance,” he said.
Sy said their planned project development cost, excluding the payment for the land, is estimated to reach P20 billion, and would generate at least 3,000 jobs.
Like the Filinvest Land Inc. (FLI) deal, though, it will be the City that will shoulder the capital gains tax, documentary stamp tax, registration and transfer taxes on the sale of the property.
FLI has purchased a 106,148-square meter parcel of the SRP and entered into a joint venture agreement a 400,000-square meter parcel under a profit-sharing scheme.
Osmeña earlier said that though SM Prime Holdings’ proposal is acceptable to him, he will leave it up to the Cebuanos whether or not the City will accept it.
He boasted that the convention center will be “more than double the CICC (Cebu International Convention Center).”
With the submission of the proposal, the City will form a selection committee that will accept challengers to SM Prime Holdings’ offer.
Osmeña had announced that the down payment on the sale, which the City projected will be given before the year ends, will be used to fund the forthcoming eighth supplemental budget.
?? ngano kaha??
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