City directs Kawit developer to correct permit application

CEBU, Philippines — The city government has returned to Universal Hotels and Resorts, Inc. the company’s application for a building permit for its development project at Kawit Island at the South Road Properties worth P18 billion.

The Office of the Building Official returned the application in June to correct “deficiencies” even before former mayor Tomas Osmeña stepped down from office.

It was Osmeña who pushed for the project.

The city said UHRI has to submit a fire clearance certificate; provide the Department of Public Works and Highways the waste water/ sanitary design; submit an application to DPWH for clearance, submit a proposed drainage system as required by DPWH, check future road widening and road opening projects of DPWH, and submit proposed road openings as required by DPWH.

So far, UHRI has not submitted its application back, said OBO head, Architect Florante Catalan.

“The application of Kawit project was returned last June 10 during the previous administration. Wala pa sila ni-resubmit so ato sila gipadad-an og communication,” Catalan said.

He said he sent a formal communication to UHRI last Thursday.

“Please comply with the requirements and re-submit to this Office for the re-processing of your application,” Catalan’s letter reads.

Catalan said that because there is no building permit yet, UHRI has not started civil works on the nine-hectare integrated resorts and casino project.

Project’s fate

The project became controversial because opposition councilors during Osmeña’s time opposed the terms by which the project will be undertaken.

The Council was headed by then vice mayor, opposition leader Edgardo Labella, the new mayor.

Catalan said he has not received any instruction from Labella just as to the project’s fate but the mayor said earlier he wants the project renegotiated because the city will reportedly receive a meager share if existing agreements are adopted.

In the Joint Venture Agreement approved during Osmeña’s time, the city will receive 10 percent of the gross real estate rental revenues to be generated from the retail lease of spaces at the commercial/shopping center and the parking lots; 10 percent of gross real estate rental revenues from the wholesale lease of gross bare-shell spaces at the integrated resort; 15 percent of gross real estate rental revenues from the wholesale lease at the casino facility; and 10 percent of the gross real estate rental revenues from the wholesale lease of spaces at hotels if the hotels are leased to a hotel operator. If UHRI will operate the hotels, the city will get two percent of 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.

During the eight-year grace period, the city will get P1 million per month starting on the first year of the construction period or two to four years prior to the operations in lieu of a revenue share.

SRP Manager Jose Daluz III said Labella is not against the project per se.

“Ang stand ni mayor is increase lang ang share sa city. We want an increase share of the city nga across the board (The mayor wants the city’s share increased. We want the increase across the board),” Daluz said.

Daluz said the city will schedule a meeting with all locators at the SRP to discuss their concerns. (FREEMAN)