Dads seek higher price for Japanese retirement facility

CEBU, Philippines - Apparently not satisfied with the floor price of  the soon-to-rise Japanese retirement facility, the Cebu City Council is planning to negotiate for a higher rental fee.

The council yesterday created an ad hoc committee that will sit down with the Japanese and local investors and may propose for the P50 per square meter rental fee, which was initially recommended by the appraisal committee.

Cebu City Mayor Michael Rama, in a later interview, did not categorically answer what his suggestion would be, but said he wants Cebu City to earn more.

Rama said he also has a price in mind but plans to disclose it once the ad hoc committee comes up with their own figure.

"Tan-awon nako magkapareha ba 'mi," the mayor said adding that such matter should be discussed.

The investors from I-land Way Philippines will be constructing a P1.4 billion worth of  retirement facility for Japanese in the 12.5-hectare property at the South Road Properties, which will purportedly bring in revenues that will benefit Cebu City.

Lawyer Joey Daluz, head of the Committee on Awards, said the investors have agreed to their offer, which is $.50 per square meter or equivalent to more than P20.

The Appraisal Committee recommended for the P50 floor price, Daluz said, but he approved the $.50 price, saying the city has much more to gain from the project other than the rental fee.

 A brief debate transpired during the executive session yesterday between Daluz and the council when some of the councilors expressed disapproval of the $.50 floor price, citing the city's disadvantage in terms of financial gain.

Councilor Margarita Osmeña, after doing computations, said that while they welcome the investment, the city government will only earn P287,500 a month or P86,250,000 after the 25-year lease of the property.

Daluz, in response, told the council that they are giving the Japanese investors the incentive considering that they are new investors here in Cebu. This was also the Japanese's proposal, he said.

"Also, there is more economic gain from this project than the rental," Daluz said adding that some 2,000 Filipinos will be employed once the facility is constructed plus the gain in terms of tourism.

Osmeña said that there are "many ways of giving incentives."

The ad hoc committee will be composed of councilors Osmeña, Gerardo Carillo, Hans Abella, Noel Wenceslao, Noel Archival, Sisinio Andales, and Mary Ann delos Santos.  (FREEMAN)