Tom changes stance, is open to mall in South Road Properties
By Marian Z. Codilla
Cebu Daily News
First Posted 09:13:00 09/27/2008
With Filinvest Inc. (FLI) dangling an P80 billion development plan, Cebu City Mayor Tomas Osmeña had a change of heart and said he is now open to the idea of having a mall within the South Roads Properties (SRP) area.
Osmeña said a mall can cater to the needs of future occupants of the hotels and condominiums proposed by FLI and can somehow complete the facilities within the reclamation area.
The mayor previously opposed the establishment of a mall within the SRP, saying its presence may cause small and medium stores within the downtown area to close shop.
Osmeña said malls don't create more jobs and its employees don't receive big salaries.
Now, the mayor said he is entertaining proposals and may even include SM on the list of priorities.
“Someday, there will be room for a mall...to address the needs of those who live in those residential units. We will consider it just to make it complete,” he said.
Aside from a mall he said a dock for ferry boats may be placed in Kawit Island to complete the facilities in SRP.
Osmeña said Ocean Jet expressed interest in the project.
FLI's P80-billion investment in the SRP include developing a 51-hectare property under a joint venture (JV) with Cebu City.
The real estate company also said it will purchase 10 to 12 hectares of land within that area worth P2 billion.
FLI is also planning to build medium to high-end high complexes of commercial spaces, hotels, condominium units and retirement facilities.
Under the JV arrangement, the Cebu City government will get at least 10 percent of the sale or lease of the building located within the area.
FLI's proposal has yet to undergo public bidding but already some Cebu City officials find it attractive.
Cebu City Vice-Mayor Michael Rama said they still have to listen to other proponents.
City Councilor Sylvan Jakosalem also said the proposal looks good.
“Seems like this proposal won't have any swiss challenge the way it looks. It sounds so beneficial to the city,” Jakosalem said in a text message sent to .
“Don't think any other developer can match this,” he added.
Along this line, Osmeña said the absence of a standard master plan for the South Road Properties (SRP) will attract investors to develop portions of the reclamation area.
Osmeña said there should be no competition among investors within the reclamation property because it would affect the city's interests to get as much profit in the joint ventures it will undertake with the winning bidder.
“There is no standard master plan but we do not allow direct competition,” Osmeña said.
“Why would we create competition for ourselves?. If it is a JV, we want the prices to be up and if there is a competition the prices will fluctuate,” he added.
Osmeña said that contrary to the claims of critics, a master plan would not be a good idea since the city wanted to “be flexible” and maximize the value of its property by entertaining the proposals of interested investors.
“The thrust is to be as flexible as possible. Maybe our master plan is to be the first to adjust to those who have good plans for the city. If you have a master plan you are stuck,” he said.
According to Osmeña, the Cebu City government cannot turn down proposals just because it is not within its master plan.
The mayor said the city's master plan for the SRP will focus on the installation of utilities like cooling, power and water distribution systems and transportation to the establishments.