Council to Tomas: Take payment for SRP lot sale

Members of the Cebu City Council have asked Mayor Tomas Osmeña to accept the payment of the giant developers that bought the 45.2-hectare lot at the South Road Properties (SRP).

During the recent executive session of the City Council, they invited stakeholders to discuss the property purchased by Filinvest Land Inc. and the consortium of Ayala Land, Cebu Holdings Inc., and SM Prime Holdings.

The property, which was bought at P16.7 billion, was purchased during the administration of former mayor Michael Rama.

City Councilor Jose Daluz III moved for the approval of his motion to request the mayor to accept the payment of the SRP lot buyers.

Lawyer Salvador Peña, counsel of the giant developers, said the mayor ordered the City Treasurer’s Office (CTO) to refrain from accepting payments from the buyers.

“The second installment and second annual installment was due August 1, 2017. The three companies proceeded to the office of the CTO to make payment of about P1.8 billion or P1.9 billion,” he said.

Peña said the giant developers sent notice to the city government that they made a consignation to the court because the city is no longer accepting the payment.

In civil law, a consignation is a deposit which a debtor makes of the thing that he owes, into the hands of a third person, and under the authority of a court of justice.

In 2015, Rama sold 45.2 hectares of the SRP lot at P16.7 billion to the consortium of Ayala Land, Cebu Holdings Inc. and SM Prime Holdings for a 26.3-hectare property, while the 19.2-hectare property was awarded to Filinvest Land Inc. After that, these buyers already paid P11 billion to the city and they are expected to settle the remaining balance this year, as agreed in the Deed of Sale.

But, Osmeña refused to accept their payment because of his questions on the legality of the transaction.

Just recently, the mayor asked the Commission on Audit to disapprove the sale because of alleged violations.

Peña informed the members of the City Council that they have not secured development permit for the construction of the sports arena on the 26-hectare of the 45-hectare purchased lot.

“I’m referring to the SM seaside, so the development permit of SM and Ayala and Cebu Holdings has not been issued because of issues of SM on SM Seaside,” he said.

With this, City Councilor Joel Garganera said the completion of the development of the SRP could have also generated jobs for the Cebuanos, adding that the mayor should allow the developments to provide livelihood for their constituents.

If the city government had approved all their permits for the developments at the SRP in 2016, Peña said the developments of the 45.2-hectare lot could have generated 350,000 jobs for BPOs and other developments at the purchased property.

City Councilor Margarita Osmeña, wife of the mayor, asked Peña to provide the members of the City Council copies of the resolutions that authorized the previous mayor to sign the Deed of Sale and other resolutions or documents that will prove the validity of the sale.

– Jean Marvette A. Demecillo/GAN