THE Iloilo City Council here has rejected the condonation on the payment of real property taxes of Panay Railways Inc (PRI) amounting to P1.4 million on the abandoned railway lot more than 2,000 square meters along the Muelle Loney.
However, the City Council approved on Tuesday's regular City Council session a resolution authorizing Iloilo City Mayor Jed Patrick Mabilog to sign a Memorandum of Agreement (MOA) with PRI by deleting a provision on the matter of condonation of real property taxes.
Republic Act 7160 provides that the local government unit may condone the collection of taxes on properties affected by a calamity.
However, the City Council said the lot in question is definitely not affected by any calamity or by Typhoon Yolanda that devastated some parts of Panay Island in November 2013.
Committee on appropriations chairman Eduardo Peñaredondo said the real property taxes of PRI will be charged against the payment of a long term lease or against the payment amount once the city decided to buy the property.
The MOA will cement the agreement between the city and PRI on the proposed long term lease by the City Government paying P10,000 per month.
Mabilog is planning to put a modern grandstand in the area and existing eateries will not be displaced but will be given a decent and uniform structure by the City Government.
The city planning and development office was also instructed to draft a comprehensive development plan for a City Government complex to include the existing city hall, the adjoining lot of Ker and Company soon to be bought by the city and the PRI property.