Wednesday, March 26, 2008 COA seeks reappraisal of North Reclamation lot
ALMOST two years after the Cebu City Government awarded the sale of a North Reclamation Area lot to Robinsons Land Corp., the Commission on Audit (COA) is seeking a reappraisal of the property.
City Administrator Francisco Fernandez said the COA commissioned an independent appraiser to assess the value of the property to make sure the City Government does not incur losses and gets the right amount for it.
COA had the property appraised and found out that the property is worth at least P15,000 per square meter.
But because the City asked for reconsideration, COA decided to seek a second opinion.
The City sold the 4.6-hectare lot known as the City Hall Block to Robinsons Land Corp. in June 2006 at P12,500 per square meter. The buyer made a down payment of P180 million, with an agreement that the balance of P400 million will be paid once the sale is finalized.
But that won’t happen unless the COA signs the sale contract.
Delaying payment
Fernandez said the reassessment of the property is delaying the approval of the contract to sell by COA, and the final payment of the balance amounting to P400 million.
“They have asked an independent appraiser to appraise the property for the second time because they learned that the lot is not worth P12,500 per square meter. They said it’s worth more but the lots in the surrounding area are worth much lower. We sold this through a bidding two years ago and that time, no one was interested,” he said.
“This is two years delayed. Sige na ug complain ang buyer nga dugay na kaayo (The buyer has been complaining that the sale has taken too long). Whatever the outcome of COA’s reappraisal, the Gokongweis would not allow an increase in the price,” Fernandez said.
The owner of a Cebu City-based real estate firm said the deal with the Robinsons Land Corp. puts the City at an advantage since lots in the area could not be sold for more than P10,000.
‘Very good price’
Lawyer Amay Ong Vaño said he has recently sold a property near SM City Cebu for only P7,500 per square meter.
Although the latest zonal value set by the Bureau of Internal Revenue for North Reclamation Area lots is at P15,000 per square meter, no one is willing to pay that much for a property there, he said.
The presence of illegal occupants and shanties affect the price.
“At P12,500, that’s already a very, very good price for the City of Cebu, jackpot na. Ang COA angay magpasalamat ni Mayor (Tomas) Osmeña,” he told Sun.Star Cebu.
At the Mandaue City Reclamation Area, lots are being sold at P10,000 per square meter, Ong Vaño said.
Fernandez said he hopes to hear from COA central office next week for the results of the reappraisal.
Once the sale is approved by the commission, the City will sign the deed of sale and collect the balance of P400 million, which the mayor plans to use to fund road repairs and other basic services. (LCR)
