City wants share in Kawit Island dev’t

Cebu City Mayor Tomas Osmeña said that minor revision is needed on the unsolicited proposal of JG Summit Holdings to lease Kawit Island at the South Road Properties (SRP).

His pronouncement came as the joint venture selection committee ( JVSC) started to scrutinize the proposal JG Summit submitted to the City Government.

In his news conference yesterday, Osmeña said he wants a provision included that will allow the City to collect 10 percent from JG Summit if they will have parts of the property leased.

If the firm chooses to operate the development by themselves, the mayor said the City will only collect between two and three percent.

“If they’re renting it (property) out, then we’ll collect 10 percent of that. If they’re operating it, then it’s less,” he said.

The City is expected to have the updated unsolicited proposal next week.

The JVSC was tasked to review the unsolicited proposal submitted by the developer before proceeding to the negotiation stage.

Once there is an agreement with the City’s executive depart- ment, all the details of the project will then be discussed before it will publicized.

If there are other interested firms, JG Summit will have the opportunity to match their offer but if there is none, they can proceed with their original plan.

Before JG Summit can close the deal with the City, though, it will still have to go through the City Council for approval.

Osmeña earlier announced that JG Summit wants to lease the eight-hectare Kawit Island and invest P18 billion on a development there.

The firm wants to construct a leisure hub with a 1,000-bed hotel in four towers, casino, convention center and restaurants, among others.

The project’s construction is expected to last for three years.

The development will rise in the area where the Sugbu building and senior citizens building are currently located.

JG Summit vowed to transfer the building intended for the elderly to the lot near the executive building of Cebu City Hall, or the portion near the senior citizens’ park, at their own expense.

The City Council already endorsed to the Philippine Amusement and Gaming Corp. last month the application of Universal Hotels and Resorts Inc., an affiliate of JG Summit, to develop and operate an integrated resort and casino in Kawit Island. /