Firm’s plan to lease SRP lot portion to undergo council’s scrutiny

The Cebu City Council will conduct an executive session on Tuesday on the plan of the Cebu Link Joint Venture (CLJV) to lease a portion of the property at the South Road Properties (SRP) for the third bridge project.

A resolution sponsored by Councilor Eugenio Gabuya Jr. seeks the approval of the City Council to grant Mayor Tomas Osmeña the authority to sign the contract of lease with CLJV.

CLJV is a partner and contractor of the Cebu-Cordova Link Expressway project, commonly known as the third bridge project.

If it will push through, the City is expected to earn some P92 million out of the rental fees during the duration of the lease.

However, before the approval of the resolution, Councilor Jose Daluz said the matter should be discussed thoroughly as the leasing will take more than a year, which he added, is tantamount to disposing of the property.

Terms

Under the contract of lease, CLJV will rent a portion of the SRP for 46 months, which was supposed to start last Feb. 1 until Nov. 30, 2021.

CLJV wants to rent 7,170 square meters of the SRP and use the jetty of the reclaimed property with an estimated land area of 25,000 square meters.

The total contract value will be paid through a down payment of P2 million, which is equivalent to the rate of the first year of the contract, upon the signing and subsequent installments payable quarterly starting 2019.

The property that will be rented will serve as staging area for the construction and support services for the project, which include parking spaces for heavy and light equipment, barracks, temporary dumpsite of construction debris and temporary storage area, among others.

The City will have to transfer in favor to the CLJV the right to occupy and manage the property during the rental period. /