EDITORIAL - The Kawit project

The Universal Hotels and Resorts, Inc. will start its P28-billion development of what used to be Kawit Island at the South Road Properties this October. This decision was the result of the meeting between the UHRI and Cebu City Hall officials over the weekend.

The company is now busy finalizing the development and architectural plans for the permits from the city government so it can proceed with the project. As to the ceremonial groundbreaking, the company has yet to decide.

There are two civil cases filed before the court questioning, among others, the City Council authority to Mayor Tomas Osmeña to enter into an agreement with the UHRI over the project.

The court, however, has yet to rule as the project gears up for its initial phase.

Both the city government and the Gokongwei firm UHRI are confident that the court will rule in their favor as they stand by the contract’s validity. This seems to be the reason why they are eager to immediately kick off the project.

The city government already asked the court to deny the move of a barangay councilman who asked for a temporary restraining order against the joint venture agreement entered into by the city and the UHRI, saying a TRO is already moot and academic.

But what if the court decides otherwise? Granting the court finds a fault in the move of the council and rules that its authority to the mayor was illegal, what options should the city and the UHRI resort to? Of course, the city is expected to exhaust all its resources to score a legal victory.

Well, a legal battle is bad for the city and the UHRI since it only affects the project. And once the project is delayed, it’s the developer that will suffer the most because of investment losses. This is something that all Kawit development stakeholders should avoid.