Firm eyes car park building

A local developer is awaiting the approval by Davao City Mayor Sara Z. Duterte-Carpio of a measure that would provide special incentives to land owners and developers who will build car park buildings within the city, an official said.

"So far we have received manifestation of interest from a local developer, but so far they are still waiting for the ordinance to be signed by Mayor Sara and after the signing it will still be published," Davao City Investment and Promotions Office office-in-charge Lemuel Ortonion said in an interview Wednesday, May 16.

Ortonio said the ordinance is expected to be signed anytime this month and it will be published for 15 days.

"It will be effective after it was published," he said.

Ortonio said there are still identified areas within the city that can be developed as areas for car park buildings.

Last January, the 18th Davao City Council approved the ordinance giving special incentive package to encourage owners and developers who will turn their properties as parking spaces for public use.

With the ordinance, the city will give two-year exemption for the payment of real property tax (RPT) for all the qualified land to be used and converted into parking space. The city will also give exemption for five years from RPT for the building should the real property owner develop or construct parking building on a land qualified.

The buildings, however, must be exclusively used as parking spaces for a period of not less than five years; should the property owner introduce another use of structure prior to the five-year lock-in period, the benefit shall be forfeited and the RPT for both lands and the building shall be assessed from the time of the grant of the benefit up to the time the building has been converted.

Aside from RPT, the owners/developers will also be exempted for five years of Business Tax, and in case of the cessation of business prior to the five year period, the benefit shall be forfeited and the business tax shall be assessed commencing of the grant until the business ceases to operate.

Only properties under commercial zone and all other zones allowed based on zoning ordinance, properties to be developed and/or used exclusively as parking space/buildings, and properties with updated payments are covered by this ordinance.

The ordinance, however, excludes those parking spaces required under National Building Code (NBC) for property owners/developers. All the existing parking spaces of establishments in excess of what is required by the law but passed through the approval of the Office of the Building Official prior to the ordinance can avail of the incentives if they meet some conditions.

The city will give incentives for improved/ renovated parking lots and buildings in excess for what is provided by the NBC under the conditions that:(1) the approved or mandatory parking space is retained, (2) a new or additional structure is built on the existing parking lot area, (3) the new or additional structure complies with the Section 4. Paragraph B of the ordinance which states that there will be no alteration of the approved building plans to avail incentive benefits and lastly (4) the improvement will not diminish or decrease building plans already approved by the Office of the City Building Official.

Land area intended for parking in excess of what is provided under the NBC shall enjoy the real property tax exemption. The area for parking that is covered under the requirement of the Building Code shall not be covered by the real property tax exemption.

“For this purpose, a tax declaration is to be required to differentiate the two areas that is covered and that is excluded from the real property tax incentive,” the ordinance read.