CEBU, Philippines - It appears that the proposed billion-worth retirement facility at the South Road Properties is not seeing the light of day soon.
"This program deserves all the support from the members of the Sangguniang Panlungsod, however, much as this august body would support the proposal, it has to carefully peruse the provisions of the agreement," said Councilor Gerardo Carillo.
Councilors have submitted proposals to the ad hoc committee looking into the proposed project. The proposals will be incorporated into the final leasehold agreement, which will be approved by the executive department.
The committee is composed of Carillo, city attorney Jerone Castillo, and Bids and Awards Committee chairman lawyer Jose Daluz III.
As specified by the committee on social services, which Carillo heads, the city must be the one to impose a commercial rate and not the investors.
Carillo said any major deviation from the plan must be approved by the City Council.
I Land Way Philippines, Inc. and Primary Properties Corp. plan to rent 12,500 square meters at the SRP for a P1.41- billion retirement facility. In their final proposal, the presidents of the two companies set the rental rate at P32 per square meter.
The investors' proposed leasehold agreement includes the proposed lease period of 50 years and an additional 25 years, stressing that the first three years of the lease term is free. The ad hoc committee proposed earlier that rent will be free for the first five years with a P100 per square meter lease rate, which is higher than the P50 per square meter floor price proposed originally by an appraisal committee.
Further, the council wants an actual plan of the facility - knowing that only a conceptual plan was presented - and to "know if the investors have deviated from the agreement being stipulated."
On the provision on the leaseholder's right to first refusal, Carillo said the same cannot be done since it would "contravene" to the existing bidding procedure and laws.
"The committee agrees with the registration and annotation of lease but the rendered title to the lessor is unacceptable. Also, the permanent improvement shall be turned over to the city upon expiration of the lease in good working order." he added. — (FREEMAN)