CEBU City Councilor Joel Garganera wants Filinvest Land Inc. (FLI) to clarify how much the City Government’s share will be in the joint venture project to develop a property in the South Road Properties (SRP) that City Hall and the firm entered into in 2009.
In a letter dated May 4, Councilor Garganera asked Tristan Las Marias, senior vice president of FLI, to explain if the City is entitled to receive 10 percent of the gross sales for each phase of the joint venture project even after its completion.
“I would very much appreciate it if Filinvest and the City clarify the agreement whether the City will indeed receive 10 percent of the gross sales for each phase even after its completion, in order for the City to fully benefit from the said agreement. Otherwise, such agreement will be disadvantageous to the City, if no development will be made in each phase after its five-year period as in the case of Phase 2,” Garganera said.
In 2009, FLI entered into a joint venture agreement with the City Government to develop 40 hectares in the SRP, which would include several medium-rise residential buildings.
The City Council earlier conducted an executive session on the matter, but Garganera said there were several questions that were not answered because there wasn’t enough time.
Garganera said that Las Marias disclosed during the executive session that the City will continue to receive 10 percent of the gross sales of each phase of the project, even after it was done. But the FLI executive, he added, failed to point out the specific stipulation in the joint venture agreement.
Garganera said that FLI reported they developed more than 10 hectares of the property but only three buildings are there, for now, even if the master development plan of the project requires the developer to construct eight buildings. Garganera also asked Las Marias to allow journalists to visit the development, particularly the fully developed Phase 1 of the project, for transparency and accountability.
In his reply to Garganera dated May 8, Las Marias welcomed the inquiry and confirmed the inspection that the councilor requested.
The inspection was scheduled last May 18. However, Garganera said that prior to the date, lawyers of FLI visited him and informed him that members of the media were not allowed to join the activity.
“That for me has no transparency there. I look at the media as the fourth branch of government, they’re there not to take sides on anything,” he said.
Las Marias sent another letter to Garganera dated May 16, saying the site visit will be rescheduled since other members of the City Council also want to join.