Capitol willing to work with city on South Road Properties

CEBU - Taking advantage of Cebu City Mayor Tomas Osmeña’s absence, Cebu Governor Gwendolyn Garcia yesterday visited the South Road Properties and expressed interest in working together with the city on the project that she intends to put up at the much-talked about facility.

For the first time since the province expressed interest in investing at the SRP, the governor stepped on the 295-hectare property where she was warmly welcomed and briefed by SRP management office head Nagiel Bañacia.

Before the governor left the Sugbu building, where Bañacia brought her to have an aerial view of the entire facility, the governor told him that the province is willing to work with the city.

“We should be working together, instead of fighting against each other,” Garcia said.

The governor conducted a preliminary inspection of the SRP because the Capitol is interested and wanted to challenge the proposal of Filinvest Land Inc., which intends to make a P2 billion outright purchase of the lots at the SRP.

The province is preparing to challenge the proposal of FLI to buy a 10-hectare portion of the property and to develop another 40 hectares under a joint venture with the city government.

The lot that the company wanted to develop is situated in SRP’s prime lot portion which is valued at P15,000 per square meter.

“We are serious in our bid and we did not do this to amuse anybody,” Garcia said after her short visit at the SRP.

She also instructed her appraisal team to coordinate with the city government in order to get the technical and assessment date of the lots.

The appraisal team of the province composed of provincial treasurer Roy Salubre, provincial engineer Eulogio Pelayre and provincial assessor Anthony Sususco.

Garcia said that the possibilities in doing development in the site are tremendous because of the complete utilities and facilities such as water and electricity.

The province doubts the proposal of Filinvest because under the National Economic Development Authority guidelines, a joint venture does not include outright purchase.

Capitol consultant on information and revenue generation Rory Jon Sepulveda cited the NEDA guidelines that said “a joint venture is a contractual arrangement whereby a private sector entity or a group of private sector entity or one man and government entity or group of government entity contribute money, capital permitive asset.” — Garry B. Lao and Mitchelle L. Palaubsanon/WAB (THE FREEMAN)

Read more...

Cebu to wrap up talks with Filinvest Land over its P80-B devt proposal (South Road Properties)

Written by Wilfredo Rodolfo III / Reporter
Thursday, 20 November 2008 00:07

THE Cebu City government said it expects to wrap up next week its contract negotiations for an estimated P80-billion unsolicited development proposal of Filinvest Land Inc. (FLI) for a large portion of the reclaimed South Road Properties (SRP).

The city’s administrator and chief negotiator Francisco Fernandez told reporters the draft joint-venture agreement is nearing completion and should be out for publication by December.

“Pending any problems, we expect to sign the formal joint-venture agreement by Januart 17. This would mean construction could start,” Fernandez said.

“We are currently talking about the area FLI will develop, what their plans are for the property and what income guarantee they can give the city,” he said. He added that since the agreement will be opened to a Swiss Challenge following government rules on unsolicited proposal, the city is also starting to set up parameters on how the challenge will be measured.

Fernandez said the challenges to the FLI proposal will be measured according to the net present value and the income it will give the city in the succeeding years.

The city also wants to make sure there are “guaranteed investments” in the property—that developers will actually build on the property immediately. “The city is not after land-sales proceeds but to spur development and provide jobs,” Fernandez said.

The Cebu provincial government earlier announced it is contemplating on challenging the proposal of FLI.

FLI, in its original proposal presented to Mayor Tomas Osmeña, said it would build on the long-term P80 billion worth of development over 60 hectares of the 290-hectare SRP.

Read more...

Capitol to invest in South Road Properties

CEBU CITY -- The Cebu Provincial Government announced Monday plans to go into commercial development in the South Road Properties (SRP), the pet project of Mayor-on-leave Tomas Osmeña, Capitol's top critic. Capitol is also preparing to challenge the proposal of Filinvest Land Inc. (FLI) to develop a 50-hectare portion of the SRP.
"The Province is interested nga maka-invest mi sa among gamay'ng kwarta (in investing our little funds), so we decided to do commercial development in the south district, especially in the South Road Properties," Capitol information and revenue generation consultant Rory Jon Sepulveda said in a press conference Monday.

The announcement was met with surprise by at least one City Hall official. Acting Cebu City Mayor Hilario Davide III wondered why the Provincial Government is suddenly interested to challenge Filinvest's offer when Capitol officials have consistently criticized the SRP.

"Are they serious?... Frankly speaking, I can't help but entertain doubts and surprise. I don't know their motive but if they are serious, let them submit their proposal then we will study it," Davide told Sun.Star Cebu.
Sepulveda said Cebu Governor Gwendolyn Garcia instructed him to draft a request relative to the guidelines of a joint venture with a local government unit (LGU).

Davide, however, said the ordinance that covers the City's negotiations with FLI does not include offers from LGUs.

Davide also said he has not come across any joint venture between two LGUs, or one LGU investing in another LGU.

"The ordinance is silent on LGUs investing in the SRP, there is no provision there that says that an LGU can join the bidding so we have to check first how the City will go about it. This is something novel but we will study their proposal," he said.

Davide, the author of the ordinance, pointed out that as stated in the measure and as announced by Osmeña earlier, any challenger of the joint venture offer of FLI must have the financial and technical capability to undertake the project.

In her State of the Province Address in July, Garcia said Cebu is the richest province in the country, posting P17 billion in assets in 2007 while remaining debt-free.

"We realized that we cannot just sit down idly and do nothing especially ilang gibalik-balik og announce nga wala'y development sa provincial properties," said Sepulveda.

Sepulveda said the proposal was hatched in a meeting with Governor Garcia, Representative Pablo John Garcia (Cebu Province, 3rd district) and Pablo Garcia (Cebu Province, 2nd district) over the weekend.
He said the scheme will be submitted to the Provincial Economic Enterprise Council (ECC) for evaluation and approval.

Sepulveda said Capitol is organizing a team to study the offer. He said the province is prepared to do the Swiss challenge or make another offer.
The Capitol consultant said the Provincial Government is thinking of innovative ways to generate resources rather than relying on traditional taxation.

FLI is proposing to buy a 10-hectare portion of the SRP amounting to some P2 billion and developing 40 more hectares under a joint venture agreement with the City Government.

Its officials said they plan to invest some P80 billion to build several high-rise and medium-rise condominium units, office buildings and a retirement and hospital facility at the SRP.

In a phone interview Monday, City Administrator Francisco Fernandez, also the Joint Venture Selection Committee (JVSC) chairman, said he will check with the committee members Tuesday and the city councilors if the bidding is open to government entities.

Whether or not Capitol is serious with its plan, he said the committee will consider the Province's offer for review once they receive a copy.

"There might be much ado about nothing if they are not serious. They will have to make a substantial deposit of some P250 million once they challenge FLI's offer, and meet other requirements," said Fernandez.

"We also have to check if they are capable of implementing the project. Money is not the only consideration here. The challengers need to have enough experience and have done similar projects in the past. We will have to review the ordinance to check if LGUs are entitled to join the bidding," he added. (GMD/LCR)

Read more...

Tom asks people’s help to fight ‘landgrabber’ (South Road Properties)

THREATS of a lawsuit by Talisay City officials and their claim over a 50-hectare portion of the South Road Properties (SRP) will not affect Cebu City Hall’s ongoing negotiations with Filinvest Land Inc. (FLI), city officials said yesterday.

While Acting City Mayor Hilario Davide III and City Hall’s Joint Venture Selection Committee (JVSC) are confident of the City’s ownership of the SRP, Mayor-on-leave Tomas Osmeña sought his constituents’ help in protecting SRP from a “landgrabber,” apparently referring to Rep. Eduardo Gullas (Cebu, 1st district).

Gullas said last Wednesday that the Talisay City Government is expected to take legal action if Cebu City tries to sell the 53.44 hectares it is claiming.

In a text message sent from Houston, Texas where he is undergoing treatment for his bladder cancer, Osmeña asked Cebu City’s constituents to stand up for the 302-hectare facility.

“Please tell the people of Cebu City that I am sick and cannot defend the SRP as much as I would like to. I need the help of my constituents against this landgrabber. I
did this project for you and not for myself. Please stand up and help me defend what is rightfully yours,” his text message read.

Davide said yesterday that he was surprised why Talisay’s officials are saying they did not know about the titling of the SRP lots that Talisay claimed.

City Administrator Francisco Fernandez, also chairman of the JVSC, said if Talisay will question the titles issued to Cebu City, it should sue the President for signing the presidential proclamation on the SRP’s ownership.

“As far as the ownership issue is concerned, Filinvest Land has no doubt that Cebu City owns the SRP. It took us three years to get those titles, even DENR denied their claim... I’m surprised that they were surprised that the lots were titled under the City’s name, because they knew all along,” Davide told reporters.

Davide further said that if Talisay City officials are questioning the titles of the SRP, they will also have to question the presidential proclamation stating that the SRP is within and is owned by Cebu City.

Talisay will also have to question the opinion of the Department of Justice (DOJ), which decided in favor of the Cebu City Government, he said.

“The title is no longer an issue. I don’t think it will affect our negotiations,” he continued.

Except for the unfilled 60-hectare Pond A and a two-hectare lot claimed by the Ting family, all other lots at the SRP, spanning some 210.074 hectares, were titled in the Cebu City Government’s name in September 2005.

For his part, Fernandez said yesterday that ownership of the SRP was not discussed in any of their meetings on the ongoing negotiations with FLI “because the titling is a non-issue.”

“That is no longer an issue. Ang among contention ana is that they know the titles have already been issued, they know that there is a Presidential Proclamation on that.

They should sue the President for issuing that document,” he added. (LCR)

Read more...

Lack of consultants hounds ADB project (South Road Properties)

By Marian Z. Codilla
Cebu Daily News
First Posted 15:09:00 11/12/2008

Cebu City, Philippines - The search for four more consultants has pushed back the start of an Asian Development Bank (ADB) technical assistance study on the South Road Properties (SRP) from last Monday to the end of the month.

John-Olof Vinterfav, land management specialist of the ADB-Cities Development Initiative for Asia (CDIA), said the group still needs to find four more consultants to complete the set of eight consultants for the pre-feasibility study of the utilities that would be used in the SRP.

The technical assistance project is covered by a $499,000 grant from the ADB and will cover the study for the water supply, district cooling, urban planning, social concerns, legal issues, financing, environment and transportation in the SRP.

Vinterfav said the results of the study will be implemented by the Cebu City government to help improve the SRP.

However, the target date to start the study will have to be moved to the end of November or as soon as the group can hire the consultants.

The study will be done in two phases -- the first phase will involve the investment priority plan while the second phase will involve the pre-feasibility study of the SRP.

The second phase of the project will also determine the costs of the projects to be undertaken at the SRP and the activities and the kind of projects that would be undertaken in the area.

The first phase is expected to start from end of November to January next year while the second phase will follow on February until November next year.

“We are assisting the city in defining what needs to be done in the SRP and not to assist the investors although we also need to listen to them as we know there are a lot of investors interested in the properties,” Vinterfav said.

He said the Bus Rapid Transit system and the plan to connect the SRP to barangays (villages) Pardo and Toong through a 5.6 kilometer highway will be included in the study as it is related to how the SRP will be integrated to different parts of the city.

“SRP is a major part of the city and so we are assisting the city in defining what will be done,” Vinterfav said.

Read more...

South Road Properties investors remain upbeat

By: Linette C. Ramos
Sun.Star Staff Reporter
Monday, November 10, 2008

INVESTORS are optimistic about their plans at the South Road Properties (SRP) despite the tedious process of acquiring lots there and the economic meltdown in the US.

Filinvest Land Inc. (FLI) Vice Chairman Andrew Gotianun Jr. said they expect to finish negotiating with the City Government and close a deal on the SRP lot purchase by the middle of January, if negotiations succeed.

They submitted yesterday their proposed joint venture (JV) agreement to the City Government’s JV Selection Committee (JVSC) for review.

Bigfoot Global Solutions chief executive officer Michael Gleissner also disclosed the additional P50 million in investment that he will put into their entertainment complex on a leased property at the SRP, which was inaugurated last Saturday.

Timetable

Although Mayor-on-leave Tomas Osmeña is “tough” to negotiate with and won’t reduce the price of SRP lots, he said he is still optimistic he can eventually buy lots in the 302-hectare facility.

Gotianun and Gleissner discussed their proposals and plans with Osmeña at the airport yesterday while the mayor waited for his flight to Manila.

“We’ll try to finish it by mid-January,” Gotianun told reporters, saying he is optimistic that FLI can work on the timetable set by the JVSC on the FLI negotiations.

FLI made a formal offer to buy 10 to 13 hectares of land at the SRP and to develop 40 more hectares under a joint venture with the City Government.

When asked if they will match any counter-proposal from other interested parties, Gotianun said: “We will study it. It’s always like that if you go through this kind of bidding... It’s like what happened to the NAIA Terminal 3.”

FLI’s offer will be subject to a competitive bidding similar to a Swiss Challenge, where other developers will be allowed to compete and buy the property at a higher price and give the City a bigger share in the JV agreement than what FLI offered.

Match

Gotianun said FLI previously turned down a chance to match the winning bidder’s offer, as in the case of the Ninoy Aquino International Airport (NAIA) Terminal 3, “because the proposal of the competitor was way off-course.”

Despite the economic meltdown in the US, which forced Bigfoot Global Solutions to lay off 40 of its 500 employees in Cebu, Gleissner said he intends to pursue the expansion project at the Bigfoot Entertainment complex.

He has so far invested P150 million for the four soundstages for the international movie studio, and will invest P50 million more to put up retail shops, residential buildings and a boardwalk beside a pond.

The facility stands on a two-hectare lot they are leasing from the City for 25 years.

“We actually preferred to purchase, but as the first investor there, the lease was the option available to start things. The mayor here is a very tough negotiator and he’s not going to give the lot for a cheap price,” he said.

Gleissner said that the US’ financial crisis affected his call center business but he is optimistic that his filmmaking business will survive the crisis and he will be able to expand this.

Bigfoot Entertainment has so far produced eight feature films and has done post-production work for US-made films.

Read more...

The city according to Tommy: South Road Properties holds promise of Cebu’s future

By Mitchelle L. Palaubsanon
The Freeman
Sunday, November 9, 2008

The future of Cebu City is rooted in the success of the South Road Properties. This was the main message conveyed by Cebu City Mayor Tomas Osmeña yesterday in his State of the City Address at the Cebu Coliseum, the first time it was held outside City Hall.

Osmeña, who is serving out his last term and is expected to return to the United States today to continue his cancer treatment at the M.D. Anderson Cancer Center in Houston, was so upbeat about the future that he promised to provide qualified senior citizens in the city a yearly allowance of P2,000 to be sourced from proceeds of SRP sales.

Osmeña, who talked about the SRP much longer than other subjects in his more-than-an-hour speech, said two major sales are expected to be finalized within the year, one to Filinvest Land Inc., and another to a company he did not identify.

“I want to see Cebu prosper. We have to do something extra to improve the image of Cebu. We are much better off than we were before and I will not allow anyone to stop us,” the mayor said, in an apparent jab at critics who have belittled the status of the SRP, to the thunderous applause of 10,000 supporters.

The mayor told the crowd it is true Cebu City has come into debt because of the SRP. In fact, he admitted, the city is “number one in the country in terms of debts,” but he said there is nothing wrong with that if you have assets.

In 1995, the city secured a P3 billion loan to build the 300-hectare SRP, placing the value of the land at the time at only P1,000 per square meter. And because of the continued fall of the peso against the US dollar, the city’s debt grew to P6 billion, consequently doubling the value of the land at SRP to P2,000 per square meter.

“That is our utang (debt), two thousand pesos per square meter. But our first sale at SRP to Filinvest is for fifteen thousand pesos per square meter. So naa ta ginansiya ana. Dili ta alkansi. Galing lang naay mga bugo nga wala sila nakakita ani (so we have profits there. We did not lose. But there are those who are dumb enough not to have seen this),” the mayor said, again to thunderous applause.

Filinvest is one of the largest real estate companies in the Philippines and it is offering an outright purchase of ten hectares of the SRP worth P2 billion. Aside from this, Filinvest has also offers the city a joint venture to develop 50 hectares of the SRP property.

Osmeña said that in 1988 when he first became a mayor, he envied his cousin, then Cebu governor Emilio Osmeña, who sold province-owned properties to various investors while the city has no land to sell.

“We had nothing and now we have something. Cebu City is moving forward,” the mayor said.

The mayor also announced the launch of a facility of Bigfoot Entertainment at the SRP, the first investor to set up in the area. The Bigfoot property will be the first international movie studio in the country. Bigfoot has so far invested P2 billion in the city.

Osmeña said Bigfoot is bringing a new industry to Cebu and is training Filipinos how to make movies, not the Manila way, but movies that would rival those made in Hollywood.

So far, the only income from SRP had been P25 million representing the lease payment of Bigfoot for 25 years.

The mayor did not talk lengthily about his health, saying only that he is going to undergo chemotherapy twice a week. He said he would rather talk of the “health of the city” than his own.

He also challenged the City Council to continue to move the city forward even without him, saying he is the only mayor in the entire country who delegates so much of his executive powers to people he believes can perform better.

“Now is the time to test these people while I will be away for two to three months. I don’t know the future but no one can take away the great privilege of serving you. I’m very proud of that,” said the 60-year-old mayor, who has been diagnosed with cancer in the urinary bladder.

In reaction, city councilor Edgardo Labella said the mayor “has set the direction for all of us in his absence. We have to respond accordingly and consider it as a challenge to do better.”

The mayor cited the accomplishment of the city in reducing the number of dengue cases to just 41 this month compared to the 370 cases for the same period last year.

His wife Margot later thanked supporters for their continued support and prayers, reassuring them that the mayor is being treated in the best hospital in the world for his kind of disease by the best doctors.

“We are blessed to have each one of you. Tommy is a good man. He is a good patient now. Unlike in 2002 nga badlungon gyud (when he was mischievous). Maybe tingali kay senior citizen na man siya (maybe because he is now a senior citizen),” Margot said in jest. (/JST)

Read more...

Bigfoot inaugurates P2B facility at South Road Properties

The Freeman
Sunday, November 9, 2008


Bigfoot Entertainment has made a mark in Cebu and the entire Philippines by becoming the first investor to pour billions to build a two-hectare complex at the South Road Properties that was inaugurated yesterday.

Cebu City Mayor Tomas Osmeña said the recently inaugurated Bigfoot complex is the first international movie studio in the country. As of yesterday, Bigfoot has invested a total of P2 billion in the city, he revealed.

“Bigfoot is bringing new industry to Cebu. It is training Filipinos how to make movies, not the Manila way but movies that would rival Hollywood,” the mayor said.

During the groundbreaking ceremony of the project last year, Osmeña said that Bigfoot’s property at the SRP will house state-of-the-art filmmaking facilities that will be at par with the famous international film outfits such as Universal Studios and Warner Brothers Studios.

The city government has allowed Bigfoot to rent a two-hectare lot, or 20,000 square meters, for close to P30 per square-meter. The company is planning to lease 12 more hectares for its expansion.

The city has already received at least P25 million from Bigfoot as advanced rental for five years.

Phase 1 of the project is the development of a quad shooting stage on a hectare of land. This studio will house the complete support facilities such as director and producer offices, star dressing rooms and suites, wardrobe rooms, hair and make-up, the art department and camera and equipment rooms. The shooting stage will also be equipped with a helicopter pad.

The second phase is the development of the fabrication and mill buildings. These will have construction services encompassing everything from individually-fabricated elements to a complete set construction.

Bigfoot Entertainment is comprised of Bigfoot Productions, Bigfoot Studios, the International Academy of Film and Television, New Cebu Films and Fashion TV Singapore and Philippines. — Mitchelle L. Palaubsanon/WAB

Read more...

More jobs seen as CH, firm open 1st movie studio in RP (South Road Properties)

By Linette C. Ramos
Sun.Star Staff Reporter
Saturday, November 08, 2008

WITH promise of livelihood and job opportunities for ordinary Cebuanos, Cebu City Mayor Tomas Osmeña announced yesterday the opening of the first international movie studio in the country at the South Road Properties (SRP).

Bigfoot Entertainment’s two-hectare complex, dubbed as the Hollywood of Asia, will be inaugurated today, and is seen to create a lot of job opportunities and livelihood even for the urban poor.

Osmeña will join Bigfoot Global Solutions’ owner and president Michael Gleissner for the opening at 10:30 a.m., before proceeding to the Cebu City Sports Center for his 2 p.m. State of the City Address (Soca).

Considered a preview of this afternoon’s Soca, the mayor gave a speech at City Hall yesterday, discussing his health condition, his indefinite leave, his vision for the SRP and Cebu City, and the prospect of losing his hair when he undergoes chemotherapy in the US.

Although a prepared draft of his Soca mentions his sentiments for the Cebuanos as he prepares to leave, and a revisiting of his 22 years in Cebu, the mayor said he will not dwell on his illness when he faces thousands of Cebuanos today.

“I will talk about my health but I will not dwell on it. I will say that I won’t be able to come back after until Christmas, or maybe longer,” Osmeña said, adding that he will focus on the vision, directions and strategies of the City.

At the social hall yesterday, the mayor broke the rather somber mood when he told the crowd that urinary bladder cancer will make him lose his hair and sex appeal, drawing laughter from the visitors.

“Dili ko kasulti unsay epekto sa chemotherapy because sometimes mahulog kuno ang imong hair, mawala akong sex appeal. Ambot lang kaha kung ganahan ba mo na mubalik ko na wala na’y sex appeal (I can’t say what the effects of the chemotherapy will be. I could lose my hair and my sex appeal. I don’t know if you’d still want me back without my sex appeal),” he said in jest.

“In the meantime, many people are concerned but wala na tay mahimo. Whatever is there, is there we just have to deal with it. Now whatever happens to the City, it’s a good opportunity for the vice mayor to prove himself,” he continued.

While he is not prepared to lose his hair, Osmeña said this is the least of his concerns when he gave his doctors instructions to pursue aggressive chemotherapy when he returns to M.D. Anderson Cancer Center in Houston, Texas next week.

In a speech delivered before some 200 city officials and employees, businessmen, government officials and friends at the City Hall yesterday, the mayor announced the opening of the complex, which he said will boost the country’s movie industry.

“This will have a multiplier effect in terms of job opportunities, everyone will benefit from this industry. They spend $40 million to make a movie and a lot of people are given jobs, from the accountant to the costume maker, the cameramen. And the actors come here and spend their money here, eat in the restaurants, go to the spa, mudaghan ang mga masahista, daghan ang makatrabaho” said Osmeña.

Aside from the opening of the Bigfoot Entertainment complex, the first locator at the SRP, Osmeña will also report today other developments on the 302-hectare facility, including the proposed transport system and security measures there.

He announced yesterday the ongoing negotiations with the Armed Forces of the Philippines (AFP) to have some 110 personnel of the Citizens’ Armed Forces Geographical Units (Cafgu) guard the SRP.

The AFP will provide a six-month training and firearms to the Cafgu personnel, while the City will take care of their uniforms.

For its part, the City will give the personnel honorarium and financial assistance.

Also yesterday, the Cebu City Police Office (CCPO) assured that security will be tight at the sports center area to ensure the safety of the people.

CCPO Director Patrocinio Comendador said they anticipate the thick crowd that will gather for the Soca, that is why they will field a sufficient number of policemen to secure the area and to prevent crimes.

Meanwhile, City Hall does not expect to finalize the sale of a portion of the SRP to Filinvest Land Inc. (FLI) until mid-January yet after some legal matters delayed the negotiations.

When before the city officials were optimistic that it will make a sale before the end of the year, City Administrator Francisco Fernandez said yesterday that the projected date of the signing of the joint venture (JV) agreement will be on Jan. 17 yet.

The JV Selection Committee (JVSC) prepared a new timetable for the expected progress on the negotiations with FLI.

Fernandez said that the delay was due to FLI’s failure to submit on time the proposed JV agreement, which they had to refer to their lawyers for review. FLI is expected to submit the proposal today.

“We made a new timetable and the final signing is set on Jan. 17 because there were legal requirements that had to be complied with, more on the part of Filinvest, mostly internal. But the timetable is subject to change if things go wrong in the negotiations,” he told Sun.Star Cebu.

And because Osmeña and other City officials have been discussing the JV terms and conditions with FLI for over two years already, Fernandez said he expects the negotiations to proceed smoothly.

“What we’re doing now is only for formality because the substance of the deal has been discussed for two years already. The signing of the sale would have been earlier but nadelay ta gamay because last week, Filinvest did not submit the proposed JV agreement because of some legal concerns,” he continued.

FLI is offering to buy 13 hectares of land at the SRP and develop 40 hectares under a JV agreement with the City Government for a high-rise and medium-rise condominium complex, retirement facility and office buildings.

Even if there are some delays, the City is expected to receive a portion of the initial down payment for the sale by Nov. 22, when the JVSC holds the first publication of the FLI offer as part of the bidding process.

Under the City’s guidelines in entering into a JV agreement with private entities, which was patterned after the National Government’s guidelines, FLI will be required to make a deposit of one percent of the total project cost upon the first publication.

If the first phase of FLI’s project will cost P25 billion, the City will get some P250 million by Nov. 22, Fernandez said.

“Once they pay us the one percent, that can be interpreted as a sale. But if your interpretation of a sale is the signing of the agreement, then that will be on Jan. 17,” Fernandez added.

According to the timetable prepared by the JVSC, they expect to declare the negotiations successful on Nov. 11, and hold the first and second publication on Nov. 22 and Nov. 29, respectively.

Other qualified developers who will match the FLI offer will be given until Dec. 29 to submit their complete counter proposals.

By Jan. 8, the JVSC already expects to award the contract to the winning bidder and endorse it to the City Council for approval. (With MEA

Read more...

South Road Properties joint deal being drafted--mayor

By Marian Z. Codilla
Cebu Daily News
First Posted 11:42:00 11/07/2008

THE Cebu City government and Filinvest Land Inc. are still drafting their joint venture agreement to develop a portion of the South Road Properties (SRP).

SRP negotiation updates and the city's commitment to help the poor constituents will be taken up by Cebu City Mayor Tomas Osmeña during his City Address (Soca) on Saturday.

The venue was moved to the Cebu Coliseum from the Cebu City Sports Center since it might rain tomorrow.

Osmeña reported for work at City Hall yesterday, a day after he quietly arrived from a four-week trip to the United States.

He was greeted first by reporters at the lobby and was welcomed by Cebu City administrator Francisco Fernandez and some barangay officials, and city officials.

Osmeña yesterday defended the SRP negotiations from criticisms by Gov. Gwendolyn Garcia's allies.

“We are very strict in following a protocol. We are adopting national guidelines for government owned and controlled corporation on how to do a joint venture. We are following the exact protocol. The issue brought up by the province is the issue on transparency. We have been transparent when we say we are drafting an agreement with FLI,” he said.

Osmeña said lawyers of FLI are drafting the agreement and the city government officials expect to have it in a few days.

FLI is proposing to develop a 50-hectare property in the SRP where 40 hectares will be on a JV while the other 10-hectare will be an outright sale worth P2 billion.

“We are not following the rules of Tommy Osmeña but we are strictly following that National Economic Development Authority (Neda) guidelines,” Osmeña said.

On the initial proposal of FLI, the city will be collecting 10 percent of the sale or lease of whatever the FLI will be developing such as condominiums, and hotels.

The mayor just brushed off the reports of the Commission on Audit that the city tops the list of all the cities with the largest liabilities.

The liability was mainly due to the multi-billion loan acquired by the city for the SRP.

“Sure the province tops the list of provinces with most assets but it is because there assets are located within Cebu City,” he said.

“We are number one in the cities with debts....no problem with debts as long as we have assets. Naa tay utang...so are we poor?”

Osmeña said he is confident the city can pay the loan, which has reached $3 million due to interest rates, in the next three to four years.

Osmeña said he would answer the issues raised by the province during his Soca.

He said he would have wanted to hold his Soca at the sports complex to remind Cebuanos of his first accomplishment with then councilor Joy Augustus Young.

He reiterated that he would not resign even if he was battling cancer.

“Why will I resign? There is no reason at this point that I will be resigning,” he said.

He said Cebu City should not focus on his illness but see his cancer as an opportunity to be independent and not rely entirely on the mayor.

“The number one responsibility or duty of the father is to make their children not depend on you. You teach your children everything that you know so that one day they will not need you anymore or maybe they can even be better than you. The responsibility of the father is how to be useless in the future so that your children will not depend on you,” he said. /With Correspondent Jully Venus Cuizon

Read more...