City eyes parking facilities as investment priority area

PARKING space facilities are one of the eyed investment opportunities in Davao City, especially that the City Council had voted for the two-year tax relief incentives for parking space developers or owners.

On Wednesday, December 13, it was reported that the City Council had retained the amendment raised by Councilor Diosdado Mahipus which is to only have two-year tax relief for real property tax for land developed into parking space facilities.

Aside from that, the five-year business tax incentive was also approved and did not receive objection during the City Council's discussion.

On the sidelines of the groundbreaking ceremony of the new Davao City Investment and Tourism building last December 12, Davao City Investment and Promotions Center (DCIPC) head Lemuel Ortonio said even before the City Council voted for the tax relief incentive, there has already been investors who expressed interest in investing to a parking facility in the city.

"Initially, early this year, there was a local investor who was interested to put up a parking facility but when he heard that there is a proposed ordinance on parking building incentives, he decided to wait for it," Ortonio said.

In earlier published reports, Ortonio said their office acknowledges the concern raised by Dabawenyos about drivers parking their vehicles at the side of the roads and with before the implementation of the "No street parking" policy, there should be enough parking space facilities, thus the current high demand for it.

He also said the return of investment for parking facilities is a little slow. They have calculated the developer's return of investments as the baseline versus the length of the incentive period to be imposed.

He added that aside from the local company that has expressed interest, another has also signified interest in parking space facility investment although it would be through a public-private partnership (PPP).

At present, it is being reviewed by the PPP secretariat, said Ortonio.

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