Guv asks City Hall for half of sale proceeds of lot at I.T. Park-A A +A
Wednesday, March 12, 2014
CEBU Gov. Hilario Davide III wants a share of the proceeds from the sale of Lot 917 in Barangay Lahug, located across the Waterfront Cebu City Hotel.
Davide said the funds can be used for the rehabilitation of local government units in northern Cebu that were affected by typhoon Yolanda.
But the Cebu City Council deferred action on the proposal to grant Mayor Michael Rama the authority to finalize a deal with Hotel Asia Inc.
Last December, Hotel Asia made the highest offer during the rebidding of the 2,357-square-
The hotel offered to buy the property for P35,500 per square meter or a total of P83.7 million.
Councilor Nida Cabrera made the motion to defer action on the mayor’s authority to sign sale documents on the lot upon the request of Waterfront Cebu City Hotel.
Councilor Gerardo Carillo, who filed the resolution, said there is no basis for deferment and Hotel Asia already made a 50-percent downpayment on the property.
Carillo worries that a delay in the contract-signing would lead the City to forfeit the deal with Hotel Asia.
A lengthy discussion ensued, during which the council had to take two breaks and tackle the issue off-the-record.
In the end, the council decided to defer the resolution and directed the committee on awards to review the sale contract and report within the week.
The City Council also directed the City Legal Office and the committee on laws to look into the issues raised by Waterfront Cebu City Hotel.
The lot is part of the Asiatown I.T. Park and one of the 201 lots that the Province donated to Cebu City in 1964.
In a letter to Rama, Davide said that if the sale pushes through, the Provincial Government wants half of the proceeds.
“We know that you have already extended financial assistance to the typhoon-ravaged towns in northern Cebu and we thank you very much for it. Our constituents are forever grateful for your help. But we suppose a little more help from you will not hurt,” Davide’s letter read.
Councilor Alvin Dizon said Davide’s request could mean that the Capitol is not keen on donating lots covered by Provincial Ordinance 93-1 to the City Government.
Rama asked the Capitol earlier to turn over the 93-1 lots and solve the decades-old issue.
Provincial Ordinance 93-1 allowed Cebu City residents to acquire Province-owned lots they are occupying. But when the period set by the Capitol expired, only a few residents were able to fully pay the lots.
Published in the Sun.Star Cebu newspaper on March 13, 2014.