CEBU, Philippines — Universal Hotels and Resorts, Inc. will start civil works on the P18 billion integrated resorts and casino on the nine-hectare Kawit Island at South Road Properties in the first quarter of 2019.
The first phase will include a convention center, shopping center, casino, themed park, and a hotel. It will take three years to complete the first phase. The two remaining hotels will be constructed on the fourth and fifth year.
Francisco Fernandez, executive assistant to the mayor, who attended the meeting between the city and UHRI officials last Monday, said the piling works will start in the last week of January or early February.
“Either the last week of January or first week of February, magsugod na sila sa piling. Maghimo na sila og foundation. It’s moving very well,” Fernandez told reporters.
Before it can begin with the civil works, UHRI would need to secure demolition permits from the city and approval from the Commission on Audit because there are two buildings owned by the city that still stand on the project location – the Senior Citizen building and Sugbu building.
Construction of the new project is also supposed to affect half of the Association of Barangay Councils building but UHRI yielded to the request of the city to spare the building in the next few years.
Fernandez said the application for the inventory of the building, as far as materials that will still be used are concerned, will be submitted to COA before the year ends.
UHRI will shoulder the construction of the replicas of the two buildings at the Magellan’s Park near the Cebu City Hall grounds.
While the buildings have yet to be constructed, Fernandez said offices affected will be transferred to other areas.
In the approved Joint Venture Agreement between the city and UHRI, the city will receive its share in the project revenues such as 10 percent of the gross real estate rental revenues to be generated from the retail lease of spaces in the commercial/shopping center and the parking lots; 10 percent of gross real estate rental revenues from the wholesale lease of the gross bare-shell spaces in the integrated resort; 15 percent of gross real estate rental revenues from the wholesale lease in the casino facility; and 10 percent of the gross real estate rental revenues from the wholesale lease of spaces in hotels if the hotels are leased to a hotel operator. However, if the firm will operate it, the city will get two percent from its gross rental in the hotel’s gross room and food and beverage revenues.
The agreement also states that the remittance of the city’s share will start on the ninth year or after the eight-year grace period.
However, the city will get P1 million per month starting on the first year of construction period or two to four years prior to operations in lieu of its revenue share during the eight-year grace period.
UHRI is fencing the area where the integrated resorts and casino will rise. Soil boring, which checked the integrity of the grounds, has been concluded. — JMO (FREEMAN)