Cebu City officials say they’ll protect SRP investor

CALLING the project a “dream come true” for Cebu City, city officials promised to help make sure that Filinvest Land Inc. (FLI) makes money out of its P25-billion project at the South Road Properties (SRP), and assured to protect their joint venture from any harassment.

Now that he is in Congress, Rep. Tomas Osmeña (Cebu City, south district) said he is just waiting for Rep. Pablo John Garcia (Cebu Province, 3rd district) to pursue his proposed congressional inquiry on the Cebu City-FLI joint venture agreement, so he can show Cebuanos it is aboveboard.

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The former mayor joined city and FLI officials led by its chairman emeritus, Andrew Gotianun Sr., and his family for the unveiling of Citta di Mare at Crimson Resort and Spa in Lapu-Lapu City last Saturday night.

Citta di Mare, Italian for “City by the Sea,” is a seaside residential community that will rise on the 40-hectare joint development area, and the entertainment and leisure complex on the 10.6-hectare lot the City sold to FLI.

Osmeña challenged Garcia anew to present to Congress the contract for the R2 Builders and Taguig City joint venture, which the latter used for comparison when he described the City’s deal with FLI as anomalous, during a privileged speech in Congress in April 2009.

“They will not dare come out with it because I will skin them alive if they come out with it. I challenge them to bring it out... I’ll show them that R2 is more anomalous.

Let them come out with that JV, but they will not because they know that it’s more anomalous,” Osmeña said.

In an interview, Congressman Garcia said he will have to assess whether there is a need to file again a resolution asking for a House inquiry on the deal, when there is a pending complaint before the Office of the Ombudsman-Visayas.

“A case has been filed before the ombudsman. We have to see if a congressional inquiry will be a duplication,” Garcia said.

It is more prudent to wait for the anti-graft office’s resolution on the matter, he added.

As for Osmeña’s statement that Garcia cannot present R2 Builders’ joint venture because a lot of people will end up in jail, Garcia believes Osmeña referred to a different deal.

Struggle

In an interview with reporters after the unveiling of FLI’s project last Saturday, Osmeña said he will fight his critics and show the Cebuanos that the City’s deal with FLI followed all government rules.

“That’s why I ran for Congress so I can defend it... They think the people will just forget about it but me, I’m ready to defend it anytime. And I know that after I defend it, some people will go to jail and it’s not going to be me,” Osmeña continued.

In his speech during the program, Mayor Michael Rama said that after the City’s struggle with the reclamation project and the criticisms against the joint venture, Citta di Mare is a “dream come true.”

Aside from the P1.5-billion proceeds of the sale of the 10-hectare Pond F, the City stands to get 10 percent from FLI’s sale of the 12,000 to 15,000 condominium units it will build.

FLI, the first developer to buy land at the SRP, will invest P20 to P25 billion in the next 20 years.

Rough edges

“We have a responsibility as far as the City is concerned... We have to demonstrate that when FLI decides to go to Cebu, we will demonstrate that FLI will make a lot of money without any harassment from the local community. We want to demonstrate that they’re coming in here to Cebu was not a mistake,” Osmeña said in his speech.

On behalf of the city officials, he assured the Gotianun family that the City will be fully behind them in the project.

While he admitted that the City’s move to collect P3 million for the transfer tax of the SRP lots was a misunderstanding, he said it should not get in the way of the deal.

“There will be some rough edges and misunderstanding like the P3-million tax, but that’s a legal question and let’s not let these rough edges destroy the basic intent because if you lose money in this investment, the whole of Cebu will lose money, because no one will invest in Cebu anymore,” he said.

Other than the agreed 10-percent share of the City, Osmeña assured that FLI will have full control over the joint venture in terms of how much it will spend for the different phases of the project and their marketing strategies.

Comparison

He added that he will make sure that no one from the City Government extorts money from FLI or asks for special favors, and that everyone in City Hall will give their full support to the project.

Congressman Garcia has previously compared the Cebu City Government’s deal with Filinvest with R2 Builders Inc.’s deal with Taguig City.

Garcia believes the former is highly disadvantageous to the Cebu City Government. He noted that the City Government, in signing a joint venture deal with FLI to develop a part of the SRP, will only get 10.16 share of the revenue.

Taguig City, in its own deal with R2 Builders, is expected to get 69 percent.

Also, Garcia mentioned in his privilege speech that in the bid terms published, Cebu City claimed that FLI had committed to pay P1.5 billion within the first three years.

But under the agreement, FLI will pay the City in seven annual installments.

Gov. Gwendolyn Garcia, through the Office of the Provincial Attorney, has filed a complaint before the ombudsman invoking the Anti-Graft and Corrupt Practices Act.

Capitol scrutinized the joint venture agreement, finding several allegedly
disadvantageous provisions against the Cebu City Government.

The Province had wanted to join the bidding for the joint venture but was disqualified for not being a private entity. (LCR/JGA)