Capitol to earn P2.7B from Ayala lease-A A +A
Friday, June 15, 2012
THE Provincial Government of Negros Occidental is set to earn P2.75 billion from Ayala Land Inc. (ALI) for the lease of its 40,481-square-meter property located at the back of the Old Provincial Capitol building.
Lawyer Mary Ann Lamis of the Provincial Legal Office said the lease contract with ALI is good for 50 years.
Lamis said the Provincial Government and ALI are set to meet about the plans for the company to start the construction on the leased property.
Governor Alfredo G. Marañon Jr. has already confirmed that ALI will start the development of the leased property very soon.
Marañon has submitted the Provincial Government's manifestation with appeal for resolution to the Commission on Audit (COA) the proposed Deed of Conditional Sale and Contract of Lease with ALI.
The Capitol's contract with ALI is for the purchase of 36,587 square meters of land worth P750,033,500 at P20,500 per square meter and the0 lease of 40,481 square meters at P73 per square meter or P2,955,133 a month, with rent escalating by 10 percent every five years.
Lamis also said only the sale or disposal of property is subject to COA review and approval under the provisions of Section 380 of Republic Act No.7160 or the Local Government Code of 1991 and Sections 181 and 197 of COA Circular No.92-386 and does not include the lease contract.
She also stressed that the move of the province to allow ALI to start developing the leased area is not part of the pressure of the Provincial Government for COA to decide on the contract. It does not also contradict Capitol’s submission of the contract for COA's approval, she pointed out.
Lamis added that she does not see any legal impediment on the development of the leased property, unless there is a temporary restraining order or injunction on the move.
Published in the Sun.Star Bacolod newspaper on June 15, 2012.