Judge rules city owns SRP

The Freeman
Tuesday, December 11, 2007

Regional Trial Court (RTC) judge Soliver Peras has ruled that Presidential Proclamation Order No. 843 transferring the ownership of the South Reclamation Project to Cebu City even without a congressional authority is within the bounds of the law.

This means the city legally owns the SRP and the court dismissed the civil case filed by former Tinago barangay captain Joel Garganera, who wanted that Mayor Tomas R. Osmeña and other City Hall officials be prohibited from selling or even leasing to anybody any part of the 295-hectare reclaimed area that was funded through a loan from Japan.

Garganera and his lawyers are planning to file a motion for reconsideration on the order of the court and would take it as far as the Supreme Court if necessary.

Peras ruled that President Arroyo has the power to issue Proclamation 843, which transferred ownership of the SRP from the national government to the Cebu City government and declared such lands as alienable and disposable even without the concurrence of the Congress.

Garganera has argued that the land at the SRP is classified as public domain, which means that it is owned by the state.

He cited the Supreme Court decision in Laurel vs. Garcia, which declared that “it is not for the President to convey real property of the government on his or her own sole will.”

Judge Peras said the Supreme Court clearly stated in its ruling in the case of Francisco Chavez vs. Public Estates Authority that the President has the authority to classify inalienable lands of the public domain, pursuant to section 6 of Commonwealth Act 141.

Garganera, an ally of Osmena’s political rival and former mayor Alvin Garcia and opposition leader Lahug barangay captain Mary Ann delos Santos, argued that granting that the President Arroyo’s proclamation is legal, the City of Cebu is still not authorized by the law to dispose the reclaimed properties without a go signal from Congress.

But Peras said the Supreme Court has already stated in several of its rulings that “to validly classify reclaimed lands as alienable and disposable, there must either be a law passed by Congress declaring it or a presidential proclamation.

“As such, the local government of the City of Cebu, being a corporation vested with the power to acquire real properties, can dispose of the same either through lease or sale. Being the owner, therefore, of the said property, the Cebu City government has the prerogative to do whatever is necessary to develop the SRP,” Judge Peras ruled.

The judge added that “it may not be amiss to consider the fact that it is the local government of the City of Cebu that is paying the loan used in the development of the SRP, as well as the interest thereof.”

When Osmena was informed about Garganera’s next move to bring the issue before the Supreme Court, the mayor said, “Garganera and Mary Ann de los Santos will do anything in their power to destroy the SRP. They should have their heads examined. Since they have nothing better to offer the Cebuanos, they want to demolish Cebu so they can emerge from the ruins and blame it on me.”

The mayor added that “we will never let that to happen. Its clear that they have no talent in building, I thank God they have no talent in destroying.”

According to Osmena the bad publicity made by Garganera for the SRP can turn off investors who may have been or are interested to purchase portions of the SRP, thereby causing losses in projected income for the city.

At present, only Bigfoot Entertainment Inc. had entered a business deal with City Hall by leasing two-hectare of SRP lot for 25 years at P5 million a year.

De los Santos said, “regarding SRP as business venture, it is a very lucrative and good business venture (sic). But one thing that hounds SRP is the legal issue, RTC has made its decision so be it, at least once and for all there is no cloud of doubt as to the legal issue. I personally is (sic) not anti-SRP or anti-progress.”

During the campaign period of the elections last May, de los Santos said that if she would win as mayor, she would return the SRP to the national government.

She said that it had to be done to unburden the city of the huge debt it incurred with the project.—(/NLQ)

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City to close deal with 3 South Road Properties investors

The Freeman
Tuesday, December 4, 2007

The Cebu City government is optimistic it can close with three investors of the South Road Properties a deal that can take care of the city’s financial woes.

And while the city remains tight-lipped on the names of the investors, Mayor Tomas Osmeña yesterday hinted the three are prime developers that can implement internal development within their area of investment at the SRP.

“They are equivalent to wholesalers...I don’t deal with retailers,” said Osmeña, who added they are keeping the names of the investors confidential as of the moment “to avoid misinterpretation”.

Osmeña explained that the city is very selective with investors in the SRP because the city wants the SRP to be sold and developed not by lots but by complexes just like in Makati where structures are virtually connected.

Likewise, Osmeña said the city plans to put up a central transport terminal at the SRP so that people will not have difficulty going to the companies that invest there.

The Resource Recovery Facility at the Inayawan Sanitary Landfill is seen to produce electricity for locators at the SRP.

With an estimated cost of P500 million, the project will generate 10 megawatts of power, which is equivalent to 10 percent of the projected power requirement of future locators at the SRP. The power that will be produced by the landfill will be sold to SRP at 20 percent lower that the rates offered by the National Power Corporation.

Osmeña earlier said that the marketability of the SRP will allow the employment of 150 people per shift for every hectare in the site. March last year, the city paid the P250-million amortization of the SRP and subsequently secured the official title for the project. — Joeberth M. Ocao/BRP

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City in ‘most critical stage’ of South Road Properties lot talks

Sun.Star
Tuesday, December 04, 2007

NEGOTIATIONS for the sale of three lots at the South Road Properties (SRP) have reached its “most critical” stage, but Cebu City Mayor Tomas Osmeña remains tight-lipped about it.

Osmeña said they are now discussing the price of the lots with three big investors and he is optimistic they will be able to finalize the sale before the year ends.

If all goes well, the City may even close the three deals at the same time, he said.

“We’re getting into the stage of pricing the lots that is why it’s very sensitive. It’s supposed to be done this year. I’d rather not say anything about it because it can create a misunderstanding. This is a very critical point,” he told reporters yesterday.

The mayor assured Cebuanos, though, that he will give the details of the sale once everything is finalized.

Request

In a news conference, he said he gave in to requests of the investors not to divulge their names and details of the transaction at this point so as not to jeopardize what would be the City’s first sale at the multi-billion peso SRP.

The investors, considered as the biggest names in the commercial development business, will put up mix-use development projects that will have commercial, residential and tourism components.

“The customer is always right so if a little confidentiality is what they’re asking for, then we’ll give them consideration... We can’t survive without customers.

But I assure the public we will be more transparent once it is finalized,” said the mayor.

Price range

Joel Mari Yu, director of the Cebu Investments Promotion Center (CIPC), the marketing arm of the SRP, said they are currently at the height of negotiations on the maximum floor price for lots within the 290-hectare facility.

At this point, he said, the price being discussed ranges from P10,000 to P15,000 per square meter.

Like the mayor, he is hopeful they can finalize the sale before the year ends but if it does not happen in the next three weeks the City will surely make a sale by the first quarter next year.

What has been agreed on with the buyer so far are the amount of space each investor will buy, their business proposal and the timetable of the project implementation.

“The City has agreed on all three, on the size of the lot, what they want to do in the area and when they will start and finish. Once the floor price is established as valid, we will bid it out and the price can go higher than P15,000 depending on the winning bid,” he told Sun.Star Cebu.

On the negotiation table, Yu said they will be pricing the SRP lots according to zones and three maximum floor price, with the Pond F area getting the highest price tag.

The Pond F is on the waterfront where an artificial white sand beach, swimming pool and a boardwalk are being constructed.

Pond F will command the highest price followed by properties fronting the South Coastal Road and the Mambaling access road. All other areas of the SRP will be ranked third in the pricing.

“So the price will really depend on what area you are bidding on. Even if it’s a prime space but it’s outside Pond F, it will not command the same price as Pond F,” Yu explained.

Last week, Osmeña said the sale will be of a magnitude that will relieve the City of its loan obligations on the SRP.

The first sale will also allow the City to provide new social services by next year, including cash gifts for all senior citizens in the city, which the City will give on their birthdays and on Christmas.

Twelve years after the City made the 12.292-billion yen loan (P5.958 billion as of August 2006) to fund the SRP, it has only earned P25 million from the project, which represents Bigfoot Global Solutions Inc.’s 25-year lease payment for a two- hectare lot. (LCR)

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Additional budget pays for baywalk ( South Road Properties), rice

By Doris C. Bongcac
Cebu Daily News
Last updated 09:06am (Mla time) 12/01/2007

Funds for a new baywalk at the South Road Properties (SRP) and Christmas bonuses in the form of sacks of rice were among the items that got the biggest chunk in another supplemental budget proposed by Cebu City Mayor Tomas Osmeña.

The latest supplemental budget, worth P27 million, is the sixth that the mayor submitted for approval to the city council.

If this proposed budget is approved, all supplemental budgets so far will have totaled P523.37 million.

This is in addition to the city’s annual budget of P2 billion.

Osmeña said that Supplemental Budget No. 6 would use unappropriated funds from the city’s share of the Internal Revenue Allotment (IRA), excesses from the 2006 budget, and realigned surplus from the 2004 Local Development Fund.

In the city council’s Nov. 28 session, the mayor’s proposal was submitted to the committee on budget and finance. A budget hearing has been set for Dec. 11.

Allocations for the new proposed budget include P7 million for the development of a 1.2-kilometer stretch of beachfront property along the SRP into a commercial strip, P6 million for rice for barangay officials and employees that will serve as their Christmas bonuses, and P3 million for the renovation of Carbon Market’s unit 3.

Another P3 million was allocated for new furniture and equipment for some City Hall offices while P1.3 million was allocated for the purchase and installation of electric posts at the newly renovated legislative building.

The mayor also wanted to set aside P1.2 million for city-sponsored activities, P1.1 million for maintenance and other operating expenses, and P700,000 for subsidies to the Kapwa Ko, Mahal Ko Foundation and the Cebu Arts Council.

City Administrator Francisco Fernandez said renovation of Carbon Market’s unit 3 is a priority due to the condition of the market’s roofing over the fish section and the general condition of the building’s second floor.

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Tom to add ‘cute’ features on South Road Properties welcome signage

Saturday, December 1, 2007

Mayor Tomas Osmeña has boasted that the welcome signage erected at the South Road Properties will become a model of strength for billboards and signages in the city, and a landmark that would become a tourist attraction.

The mayor disclosed the other day that he has planned “something cute” for the welcome sign at a hill of the 295-hectare SRP.

The signage, built at a cost of at least P6 million, is already almost complete, Osmeña said as he mentioned that the “cute” addendum to the structure would be statues of children climbing and playing to portray the SRP as one dedicated to the children who are the city’s future.

Osmeña said that at least four to five statues of children would be placed on the signage, or “enough to be noticed”, and they would be made to appear playing like climbing the steel bars, sitting and waving to passers-by.

Some modification on the signage would be done to accomplish this added design, said the mayor.

The welcome signage, a three-storey high structure made of aluminum pipes, would have the title “South Road Properties” spelled out similar to the famous “Hollywood” welcome sign.

This structure is not an ordinary one, Osmeña said adding that it has been built to withstand even the strongest typhoon. This is the reason why the project, which would also promote the SRP, is very expensive, he said.

The welcome sign is just part of the bigger plan, the mayor said citing another plan to build a large water tank that would appear like a tower standing beside the signage.

He said the giant water tank can hold a maximum of 10 million liters of water from the wells of the SRP. This tower will also have coffee shops and bars whose lights would become a nightly attraction from afar.

Osmeña said the entire “welcome” project would cost P20 million, an amount that he insisted is “not foolishness” but a bold promotion of the SRP.

Once the structure is finished, it would become a city landmark that would attrack local and foreign tourists, he said.

The mayor added that the city would have to wait until the first sale of SRP lots is finalized. The city will bid soon the 30-hectare block of the SRP at the Mambaling side.

Osmeña earlier said that there are at least three companies interested to buy the part of the property. — Wenna A. Berondo/RAE

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Sell reclamation (South Road Properties) lots without bidding?

By Doris C. Bongcac
Cebu Daily News
Last updated 02:17pm (Mla time) 10/23/2007

CEBU CITY, Philippines - To hasten the sale of lots at the South Road Properties (SRP), Cebu City Mayor Tomas Osmeña wants to skip government bidding processes.


Osmeña said government bureaucracy is causing delays in the disposal of SRP lots, so the city government is in talks with the Commission on Audit (COA) to allow the city to sell SRP lots without auction, but at a price approved by the COA.

“The COA is still considering some of our proposals. Our thrust is to maximize what is beneficial to the city,” the mayor said.

At least three major real estate companies are in talks with the city to acquire lots at the SRP, Osmeña said. He declined to disclose details about the companies or their plans for the SRP.

The mayor said the city would not act on the proposals of these companies unless city officials can be sure of what the companies intend to do with the SRP lots. He also said the city would wait for the COA’s approval to skip the bidding process before disposing of any more SRP lots.

The Government Procurement Act requires the national and local governments to auction the disposal of government properties to get the best possible price for it.

Earlier, Osmeña planned to first sell off 30 hectares of SRP land located near its Welcome Hill to quickly pay off the P6-billion loan from the Japan Bank for International Cooperation to construct the SRP. The rest of the lots would then be leased.

On Monday, however, the mayor said the city government may also sell lots other than those near the Welcome Hill because city officials want to be “sensitive of the market conditions.”

“Some investors are eyeing other parts of the SRP,” he said.

If SRP lots are to be sold without going through bidding processes, the price would be based on the market value approved by the COA, the mayor said.

“The price will be determined by appraisal, but I will put a premium depending on what kind of Establishment is going to be operated there,” he said.

Preference will be given to businesses that would not compete with local industries, such as business process outsourcing.

“We are not selling a piece of land. We are selling development, and we are being picky,” Osmeña said.


The mayor added that he does not want the SRP to end up like Mandaue City’s reclamation project, which, he said, has become a “junkyard for surplus equipment for sale.”

“This (SRP) is one area where we want to maintain certain standards,” he added.

Osmeña said he was confident that the city government would be able to meet its target revenues from the SRP.

He said he expects to earn a total of at least P500 million from the reclaimed property by the end of the year.

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Tomas remains very selective in accepting locators at South Road Properties

The Freeman
Tuesday, October 23, 2007

Cebu City might be saddled with multi-million worth of debts but Mayor Tomas Osmeña stood firm over his decision to be strictly selective in accepting from any source, lease or purchase proposals of part of the 295-hectare South Road Properties.

“We’re not just selling a piece of land but development,” Osmeña said in a press conference, emphasizing that he would not just accept any proposals from any business or institution.

The mayor said, “We’re very picky with who we’re dealing with,” explaining that the city will only deal with people who can maintain the standards that has been set for the SRP.

Osmeña admitted that the city has already received several proposals but most of these were turned down. One of the rejected proposals was putting up a stockyard, he said.

He said he would not like the SRP to be like a “junkyard” similar to what happened to the Mandaue reclamation project. “I have to balance it. If I want to be lazy about it, I will just chop it up and sell it,” said the mayor.

So far, there have already been at least three locators, all of which are real estate firms and each of which had proposed to purchase at least seven hectares of the SRP.

These locators still have to undergo scrutiny to ensure that they can create “impact” for SRP and the Cebu economy, and to make the SRP more “marketable” similar to what the Mactan Export Processing Zone and call center businesses have done.

Meanwhile, Osmeña said the city has been negotiating with the Commission on Audit on the legal aspects in dealing with offers from businesses. The city is open to bidding requirements and processes but the mayor said these might “destroy the marketability of SRP.”

“We tried to avoid bidding just like the Philippine Economic Zone Authority,” the mayor said COA would not allow the city to follow the procedures undertaken by PEZA-registered companies.

He said that the city should be “very sensitive to the market price condition. We still bid out but on some bases.”

The city needs to raise P500 million this year to pay its loan from the Japan Bank for International Cooperation that was spent in developing the SRP. — Liv G. Campo/RAEType rest of the post here

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Tomas to keep South Road Properties lot negotiations hush-hush

The Freeman
Wednesday, September 19, 2007

Mayor Tomas Osmeña will no longer reveal details of his negotiations with potential investors at the South Road Properties after some investors reportedly criticized him for revealing details of their negotiations.

Osmeña, who said he respects the wishes of potential investors, yesterday explained that he revealed details of negotiations to the public because he only wanted to be transparent just like the way he is running City Hall.

The mayor, however, told reporters that there are five potential investors who want to purchase the 30-heactare part of the SRP at the Mambaling side. The city would soon bid out the 30-hectare area.

“There are at least five interested bidders but I can’t give you the details because I was criticized by investors for talking about our negotiations. But I was just transparent,” Osmeña said.

There are also investors who want the other portions of the 300-hectare facility but Osmeña said that the city would prioritize the sale of the 30-hectare portion, saying the city would be very liberal on its first sale.

Earlier, the mayor said that there is a certain investor who offered to buy the lot for P2 billion but while the city has not decided on it, the lot is still open for other offers. He said that the lot will be sold at a minimum of P7,000 to P13,000 per square meter or around P2 billion to P4 billion for all 30 hectares.

“Our first sale would be very liberal, so now is the best time to make a deal,” he said.

He reiterated that the city is aggressive in selling the SRP because it needs to have extra income aside from traditional sources to meet its liquidity requirement for the next few years.

Osmeña earlier said that the city needs to raise P500 million this year to take care of the city’s debts for its loan from the Japan Bank for International Cooperation for the funds it spent in developing the SRP.

The city government still has a remaining balance of P6.3 billion on its loan with the Japan Bank for International Cooperation as part of the 12.292 billion yen it borrowed from the bank to build the SRP. The loan is payable in 20 years. - Wenna A. Berondo/QSB

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City to close sale on South Road Properties lot this year: Tom

Sun.Star
Tuesday, September 11, 2007

CEBU City will close a sale on a South Road Properties (SRP) lot this year, Mayor Tomas Osmeña announced yesterday.

Osmeña, however, said he will hold back some details of the discussions with interested investors at their request.

Osmeña said a parcel of land will be bidded out and sold to the winning bidder by the end of the year.

The mayor initially planned to sell only the 30-hectare lot just after the SRP welcome hill but because several prospective buyers want properties other than the one he wants to sell, he may consider selling other lots.

He has not set criteria on what industries or investors will be prioritized for the first sale since his only concern is to raise money for the next loan payment.

Ideal use

If he had his way, he wants the winning bidder to build a commercial-industrial complex that will include a 25,000-seating capacity coliseum, which is the most ideal use for the 30-hectare lot.

“Yes, we should have something happening before the year ends, definitely we will have something... Some developers prefer sites other than the 30 hectares. We are now discussing with COA on what the different alternatives are (in bidding out the lots),” said Osmeña.

The floor price for the lots during the bidding will be P5,000 per square meter, “and it will be open to everyone, it’s open to the universe.”

In his news conference yesterday, the mayor said interested investors at the SRP have criticized him for his pronouncements on their interests at the SRP and their planned developments.

Quandary

“That is why I am now in a quandary because the SRP is owned by the people of Cebu City and right now, they’re saying ‘Please don’t announce anything’. So for now, I will hold back what I can, anyway we’re not sacrificing so much transparency because once it’s finalized, we will have to disclose that eventually,” he said.

Osmeña had earlier announced that shopping mall giants SM Prime Holdings Inc., Filinvest Land Inc., Robinsons Land and Ayala Land are all interested to put up mix-use developments at the SRP.

He did not say yesterday whether the same parties will be participating in the bidding.

After making the first sale, the mayor said he will give high priority to industries that will increase the marketability of the SRP, such as a high-end hospital facility for retirees and expatriates.

The first investor to put up a high-rise building at the SRP will also enjoy concessions from the City Government.

Osmeña said soil tests conducted showed that buildings as high as 20 stories can be constructed there, just like the high-rise hotel that Sheraton built at the North Reclamation Area.

Contrary to reports that high-rise buildings in reclaimed areas are not safe, the mayor said the Sheraton hotel will be operational soon under the management of another hotel chain, Sofitel.

“Our concern at this time is to address liquidity problems and once we raise a few hundred million pesos, I’m happy already. The order of the day is not to go bankrupt and once that is satisfied, we’ll start to be picky again,” Osmeña added. (LCR)

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Cebu government eyes P3-B proceeds from sale of reclaimed area South Road Properties

By Wilfredo Rodolfo III
Reporter

CEBU CITY—The city government hopes to raise at least P3 billion as it auctions off a portion of its 260-hectare reclaimed property off the Mactan Channel.

The city council last week gave Mayor Tomas Osmeña authority to sell 32 hectares of prime property at the South Road Properties (SRP) through public bidding. The council also allowed the mayor to start negotiating with other companies for a possible lease or joint-venture projects for the rest of the property.

Councilor Jose Daluz II told Business Mirror on Monday that the 32-hectare property, tagged lot 1-A, would be sold to one buyer. The terms of the bidding will be made public later this week, he added.

Daluz, the chairman of the council’s committee on finance, said City Hall is still deciding on the floor price for the property, but said it would be around P12,000 per square meter.

“This property is very valuable because it is the first lot you will see as you enter the SRP. This is very ideal for commercial businesses like malls,” Daluz said.

The money raised from auction will be used for debt servicing as well as for more development projects in SRP to make the property more attractive to investors. Some of the proceeds will also be used for the city’s services.

He said the second authorization given to the mayor would allow the chief executive to discuss terms with the companies interested in putting up commercial or industrial facilities in the area.

The financial terms of deals, however, would have to go through the City Council for ratification, Daluz said.

The SRP, completed in 2001, was built through a ¥6.7-billion loan obtained by the city government with the Japan Bank for International Cooperation. The biennial amortization would run up to 2020.

The national government then contributed about P10 billion for the Cebu South Coastal Road, which straddles through the SRP.

The city government, however, only officially sealed one deal: A four-hectare lease contract with Bigfoot Global Solutions, which plans to build a film studio on the reclaimed property.

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Council authorizes Tom to sell 31 hectares of South Road Properties

The Freeman
Thursday, August 23, 2007

The Cebu City Council yesterday authorized Mayor Tomas Osmeña to sell 31.9 hectares of lots at the South Road Properties so the city could earn an amount of close to P4 billion to finance more projects.

The city legislators unanimously approved the resolution of councilor Joey Daluz, III to allow the mayor to dispose of properties through a public bidding and hope that such would be the start of SRP’s development.

Mayor Osmeña, who is now on an official trip to India to study the country’s clean and cheap airconditioning systems, said these properties are situated immediately after the viaduct or just across barangay Mambaling, a location he described to be “advantageous to buyers”.

The city would construct signage at the SRP worth P5.2 million and would spend P2.6 million for the landscape at the end of the viaduct, on the right portion of the SRP upon reaching the reclaimed properties from the city.

Osmeña said the properties located at the back where the welcome signage is to be constructed are the same 30 hectares of lots that are first to be sold through bidding.

It was learned from Daluz that the lots were already titled and registered with the Land Registration Authority under the name of the City of Cebu on September 22, 2005.

The mayor said any licensed real estate brokers who could help the city sell the lots at the SRP would be given a two-percent commission out of the proceeds of the sale.

If sale of lots is not done through a broker, the mayor said the commission intended for a broker would be donated to the Emergency Rescue Unit Foundation or to any charitable institution.

As of now, not even a single square meter of the 295 hectares of the reclaimed lots was sold, although an international filmmaker - the Bigfoot - has rented a two-hectare lot for only 40 US cents or about P26 for every square meter.

The city needs P1.7 million everyday to pay for its loan from the Japan Bank for International Cooperation.

Tinago barangay captain Joel Garganera earlier said the city could not sell the SRP lots to the public because until now the property is still being owned by the national government.

He claimed that the SRP lots are still not owned by the city because when President Arroyo issued a proclamation order transferring the ownership of the SRP to Cebu City, she made it without congressional authority. – Rene U. Borromeo/MEEV

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Cith Hall seeing 3 firms to market South Road Properties lots

Sun.Star
Thursday, August 16, 2007


MAYOR Tomas Osmeña said the Cebu City is seeing three appraisal companies for the valuation of South Road Properties (SRP) lots, as it is now engaged in “heavy consultation on who will bid out and where” on the sale of a 30-hectare portion of the reclaimed land.

He said the City is selling because of “liquidity requirements” for the next one to two years.

Otherwise, the City does not intend to sell SRP lots, reiterating his policy to instead have locators introduce projects that would generate jobs.

The mayor said prices of SRP lots are not expected to go down so that those interested must take advantage as “this is a good time to make a deal,” when the City is in need of money to pay its foreign loan.

Defense

Also, the mayor justified the spending of millions of pesos for the SRP welcome signage, saying there is no reason for one to spend on a “nice doormat” worth a few millions pesos when he is selling a multi-million property.

“It is like giving a gift. You spend a little money to put a ribbon, and a wrapper,” he said.

The sign is part of the promotion of the SRP.

To be constructed at the welcome hill leading to the SRP, the sign will be three stories high and will be made of welded aluminum pipes. It is also designed to withstand storms up to signal number five.

The words “South Road Properties” will be spelled out similar to the “Hollywood” welcome sign, and will include the SRP emblem.

Cheap

Last Monday, Osmeña said the welcome sign is the cheap part of the project and that P20 million will be spent to construct a tower beside the sign.

The tower would be built because he did not want a mere water tank to be built near the welcome sign.

A project concept pinned on the wall of his office showed the giant welcome signage with the tank on one side; only that the tank looks like a castle tower complete with battlements.

He said spending for the signage and the tank is similar to parents exhausting their funds to send their children to school.

Although considered extravagant at first light, it really plays an important part in marketing the SRP, he added. (RHM)

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South Road Properties signage to cost P30M

By Doris C. Bongcac
Cebu Daily News
Last updated 02:33pm (Mla time) 08/14/2007

Cebu City, Philippines - The Cebu City government would have to spend at least P30 million for a tower and a signage that would welcome people to the South Road Properties (SRP).

The signage would give the SRP an "identity," which Mayor Tomas Osmeña said would be crucial in marketing the 300-hectare reclamation project.

Osmeña said at least P8.3 million would be needed for the installation of a signage that would be patterned after the famous "Hollywood" signage.

And just like in Hollywood, the signage would also be placed atop a hill that would be landscaped on an elevated portion of the SRP near the viaduct of the South Coastal Road.

Another P20 million would be spent for the construction of a tower that would be designed like a "chess board" and constructed to the left of the SRP signage.

Osmeña said the two structures would be used in the city's design of the SRP logo.

"We are trying to create a branding, a symbol of the SRP," said Osmeña, who added that "branding the SRP is part of the business of promoting the SRP."

On August 8, the City Council passed a resolution by Councilor Nestor Archival authorizing Mayor Osmeña to engage in a contract with Dakay and Development Corporation for the construction of the SRP signage worth P5.65 million.

But a second resolution by Archival, which authorizes the P2.68 million landscaping of the welcome hill by Win Construction, was deferred for review.

"One of the beautification projects to be carried out by the City to make the South Road Properties attractive to investors and tourists alike is the proposed construction of a signage," according to Archival's approved resolution.

The signage, which would be about three-story high would be made out of welded pipes, which Osmeña said may later be clad in aluminum.

"The signage is designed to withstand even a signal number 4 or signal number 5 typhoon," the mayor said.

He said the funds for the landscaping of the welcome hill, which the city already appropriated for, is the "cheaper" part of the city's expense.

The construction of the tower, which is an even bigger expense, would have to wait until the city makes its first sale of the SRP.

Osmeña said at least 30 hectares of the SRP would be bidded out to interested buyers by the end of the year.

Part of its proceeds would be spent for the tower construction worth P20 million.

Aside from its aesthetic features, the tower would also serve as a tank to store whatever amount of water is extracted from the welcome hill.

Osmeña said the tower would also be equipped with a filtration tank and pipes that would deliver at least 20 cubic meters of water to the Metro Cebu Water District daily.

Like Pond A, the welcome hill would also be a good source of water, which can be desalinated to make it potable.

Read more...

City Hall spending huge amount for South Road Properties signage

Tuesday, August 14, 2007

The Cebu City government would be spending over P8.3 million for the construction of a welcome signage and for the landscaping of the entrance of the South Road Properties to attract investors.

At least P5.6 million is earmarked for the construction of the welcome signage while about P2.6 million is set aside for the landscaping.

But some individuals said the amount intended for the signage project is too much and that its construction is not an assurance to convince investors to pour investments into the SRP.

But Mayor Tomas Osmeña yesterday defended the amount, saying that what they would be building is not an ordinary signage, which will be constructed by the Dakay Construction and Development Corporation.

According to the mayor, the contractor would build a three-storey building with a terrace where people could view the beauty of the city’s downtown area during nighttime.

The building would be surrounded by a beautiful landscape to be undertaken by the WIN Construction.

City Council majority floor leader Nestor Archival said the Bids and Awards Committee has recommended that Osmeña be allowed by the council to enter into contracts with the two construction companies on the two projects.

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P5.8M South Road Properties welcome sign ‘part of promotion’

CEBU City Mayor Tomas Osmeña justified the P5.8-million construction cost of the welcome sign at the South Road Properties (SRP), saying the project is part of the branding and promotion of the 295-hectare facility.

The sign that will be constructed at the welcome hill leading to the SRP will be three stories high and will be made of welded aluminum pipes. It is also designed to withstand storms up to signal number five.

The words “South Road Properties” will be spelled out similar to the “Hollywood” welcome sign, and will include the SRP emblem.

In a news conference yesterday, Osmeña said the welcome sign is the cheap part of the project and that another P20 million will be spent to construct a tower beside the sign.

Willing to wait

But the mayor is willing to wait until the first sale of SRP lots is finalized before constructing the tower.

“It’s P5.8 million but it’s massive, this is not an ordinary billboard signage. This one is structural and it will be like the `Hollywood’ sign. It can withstand signal number four or five. We’re just trying to create a branding and symbol for the SRP,” Osmeña told reporters.

During their July 18 session, the City Council approved the program of works and estimate, amounting to P5.8 million.

The welcome sign, the Sugbu administrative building, the senior citizens building and an old church at the Kawit Point will all be part of the SRP landscape to help sell the property, he said.

Bidding procedures for the sale of the 30-hectare block after the welcome hill will start as soon as the City Government clears the Mambaling side of the SRP.

Big sign

“The landscape we’re working on is part of the branding for the SRP, it’s all part of the business of promoting the SRP and creating many different opportunities. After our first sale, we’ll put up the tower,” the mayor said.

At the entrance to the SRP, a welcome sign that is under construction is already visible to motorists.

But Osmeña said this is just a mock-up model to determine the appropriate size of the sign, which he said should be big enough to be seen by motorists even before they reach the SRP entrance.

The mayor wants the tower to be multi-purpose, which can have coffee shops and double as a water tank that can hold water from deep wells within the SRP.

Once the 15 deep wells are operational, the City hopes to sell up to 20,000 cubic meters of water to the Metropolitan Cebu Water District.

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Pages pushes setting up of sports hub within South Road Properties

CEBU City sports commissioner John Pages is pushing for the establishment of a sports hub at the South Road Properties.

“I took it up with the other members of the commission, that we need to move forward with this plan,” Pages said.



The commission met last Thursday. Pages said it has been more than a year since the commission announced the plan but so far, it is not even close to being carried out.

“It is still hanging. Right now, everything boils down to the mayor’s approval,” Pages said.

Pages said he understands that City Hall needs to prioritize getting potential investors pick lots at the SRP. However, he said the city could at least designate a portion for the project so that construction can already start.

Short of venues

“We are badly short of venues,” Pages said. With the Cebu Business Park field now converted into a future site for a condominium, the city no longer has a football field.

“We could start with a football field at the SRP. It is the easiest and at the same time, it could be a venue for many other events,” said Pages.

Councilor Sylvan “Jack” Jakosalem said that while there were already initial talks, their attention is now directed toward the P45 million refurbishing of the Cebu City Sports Complex.

The budget, which could possibly come from Malacañang, will be presented to President Arroyo when she comes over next month.

Meanwhile, the mushrooming of various marathons in the city spurred the rescheduling of the Cebu City 21K marathon.

Pages said that they do not want events to overlap so that participation will be concentrated.

The marathon, which features races in the 21 km, 10 km and 5km, will be held on Oct. 14. Pages reiterated that this race is only a preview of a much bigger race they are planning that will coincide with next year’s Sinulog festivities.

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41-hectare South Road Properties lot ready for bidding

Inquirer

CEBU, Philippines—The Cebu City government is ready to bid out for lease or sale 41 hectares of the 300-hectare South Road Properties.

Joel Mari Yu, managing director of the Cebu Investment Promotions Center, said the reclaimed lots include a 30-hectare block, an eight-hectare area because the two-hectare site leased by Bigfoot entertainment and another three-hectare area which is planned as a site for two condominium towers.



“The 30-hectare block has caught the attention of the three biggest land developers Robinson’s Land Corp., Ayala Land, Inc. and the SM group of companies,” Yu said.

The eight-hectare portion includes already the two-hectare site being leased by Bigfoot Entertainment while the other three hectare is being eyed by a joint venture of an American company with partners from South Korea.

Except for the Bigfoot group of companies, all the rest are only interested to lease.

Yu said that Bigfoot wanted to acquire amore hectares to advance further its diverse interest in the information and communications technology (ICT) sector.

Cebu City administrator Francisco “Bimbo” Fernandez said he has prepared all documents for the bidding of the 30-hectare bloc.

“All we are waiting for is the go-signal of Mayor Tomas Osmeña,” Fernandez said.

Once Osmeña gives his go signal, Fernandez said he would publish the invitation to bid in the newspapers.

Yu said the city government needs to hire a professional group to assist in the technical, financial and legal aspects of the negotiation.

Based on the prepared documents of the Cebu City government, the floor price of the 30-hectare bloc is at P7,000 per square meter. The terms include a 20 percent downpayment upon the submission of the formal offer. Another 50 percent upon the awarding of the contract and the remaining balance will be paid upon the signing of the deed of sale.

For the eight-hectare and the three-hectare portion, Fernandez said that the city government was planning to apply the Swiss-challenge mode if approval is given by the Commission on Audit.

Under a Swiss-challenge model, the city government will advertise the price offer of the interested party and will invite other interested parties to match it.

Fernandez said this model would apply to these properties because there are interested parties already.

So far Bigfoot Entertainment is the only locator in the almost 300-hectare reclaimed property of Cebu City.

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Osmeña to hire urban planner who designed Boardwalk South Road Properties

Cebu Daily News

Cebu City, Philippines - Cebu City Mayor Tomas Osmeña plans to acquire the services of an internationally renowned urban planner and design specialist to help in the city's urban planning and the design of the South Road Properties (SRP).

But Osmeña said it would take a little while before he will be able to ink a consultancy contract with Felino Palafox Jr. He did not elaborate why.

Palafox is the founder of the Palafox and Associates that is known for their architecture, interior design, urban and master planning and landscape architecture.

The design of the proposed Mandaue City Boardwalk, SM South Mall and the Cebu Business Park are among their numerous works.

“We plan to hire Jun Palafox for consultancy, as a consultant for urban planning,” Osmeña said in a media forum on Tuesday at the Marco Polo Hotel.

Osmeña said he was able to work with Palafox and four other consultants in 1995. They did a year-long study on the viability of the proposed Cordova Reclamation Project on behalf of the Lopez Group.

While Palafox is an internationally known design and urban planning expert, Osmeña said he also had to travel abroad to attend waterfront and tourism development conferences and observe the design of tourists destinations in Hawaii, Saipan and Phuket among others.

Because of their exposure together, Osmeña said, “many of the inputs in the SRP has his (Palafox's) background and my exposure to tourism and background of what they have in the different parts of the world.”

Osmeña said the city government needed Palafox’s expertise.

Recently, Osmeña met with representatives from the Japan Bank for International Cooperation (JBIC) to solicit their technical assistance especially in the marketing of the 300-hectare reclamation project to Japanese investors.

City Planning and Development Officer Nigel Paul Villarete said in an earlier interview that they were awaiting a formal proposal from JBIC on how to go about the implementation of their marketing strategies.

Villarete said JBIC had always extended free technical assistance to countries where they had projects.

Osmeña said he wanted to make sure that the SRP is properly cared for because it is the “future” of the city.

“Cebu City now has the ability to control its destiny (because of the project income that will be derived from the SRP). We are near to being financially self-reliant,” he said.

Osmeña said that while the city government incurred billions of debts from the SRP, it was also expected to raise revenues that would augment whatever it was that the city government raised from taxes.

The city government now operates on a P2-billion annual budget. Of the allocation, at least 25 percent goes to projects, while another 25 percent is allocated for debt servicing.

He said the remaining 50 percent of the city's annual budget is spent for personnel services and maintenance and other operating expenses. /Reporter Doris C. Bongcac

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Excess water from South Road Properties can supply local water district

Type your summary here

Monday, June 18, 2007

Sun.Star

SOUTH Road Properties (SRP) plan to sell excess water from the Cebu City south reclamation area to the Metropolitan Cebu Water District (MCWD).

“If we have extra water we may sell it to MCWD,” said Joel Mari Yu, Cebu Investment Promotions Center (CIPC) managing director and in-charge of marketing the 300-hectare SRP.

Yu made the announcement following SRP’s acquisition of two water treatment facilities to supply water to its locators.

He said one treatment plant will recycle wastewater while the other one will convert seawater through desalination to produce potable water.

Water is not going to be a problem in SRP, Yu said. “We can sell water to MCWD if we need to,” he added.

Should the entire SRP be filled with locators, the area is projected to use some 20,000 to 25,000 cubic meters of water per day. Of the total demand, about 30 percent will be for potable water while other uses can tap recycled water.

Yu said this belie rumors that SRP is experiencing water problems.

Although he acknowledged that Cebu City is having water shortage concerns, “the case is different with SRP.”

“The whole of Cebu, the impression is, there is a water problem. But, investors do not have to worry about this because, there are already cheaper sources because of the advent of water technology,” Yu said.

With regard to Metro Cebu’s water problem, Yu said MCWD has to find other sources apart from the Carmen Bulk Water Supply Project proposed by the Ayala-led consortium.

“There are now other sources of water. Most companies right now are using recycled water technology, or desalination process to cut cost on water bills,” he said in an interview.

Yu cited Mactan Economic Zones 1 and 2 that source about 60 percent of their water requirement —except for drinking— from recycling facilities.

SM City Cebu is also using desalination for its water supply to cut its water bills.

Yu said cost of desalinated water has become competitive with conventional water supply. (MMM)

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Tom to prioritize senior citizens, South Road Properties, schools in next three years

Friday, June 15, 2007
The Freeman

Financial assistance for senior citizens, better tax collection, more school buildings and the promotion of the South Road Properties will be the priorities of Mayor Tomas Osmeña for the next three years.

Osmeña said he intends to allocate P50 million as financial subsidy for senior citizens who are residents and voters of Cebu City.




By next year, the mayor said that senior citizens could already start receiving at least P2,000 a year from City Hall-P1,000 during Christmas and another P1,000 during their birthday.

At present, a team is already formulating the guidelines for the claiming of such benefits and the mayor stressed that only senior citizens who are residents and voters of Cebu City are entitled to such benefits. Programs for senior citizens have always been among the priorities of the mayor. In fact, a Senior Citizens Center has been constructed at the South Road Properties.

Osmeña said the city government will also start bidding the 30-hectare portion of the SRP near barangay Mambaling.

There are already ongoing negotiations for the area but while these are not yet final, the city is doing “cosmetic” work there such as the construction of a fence.

Osmeña said an investor has already offered to buy the property for P2 billion but the city has not made a decision on the proposal yet. The 30-hectare property is being sold at P7,000 to P13,000 per square meter or around P2 to 4 billion. The mayor said the city is still open for other offers.

Another priority project of the city government is the construction of more school buildings. The mayor said that the city has P30 million unprogrammed funds from Malacañang, surplus from last year and from the pork barrel of the mayor’s brother, Senator Sergio Osmeña III. The mayor said these funds will be used for the construction of additional classrooms for the different schools in the city.

The mayor said that the thrusts of the city government remains the same but “we’re always looking for changes because we want to get better.”

He said that there would be more changes in the internal operations in the City Hall, which include plans to make tax collection more effective. — Wenna A. Berondo/QSB

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Water supply at South Road Properties not a problem

By Ehda M. Dagooc
Tuesday, June 12, 2007

Amid the looming water supply problem in Cebu, future locators of the South Road Properties (SRP) have nothing to worry about as the Cebu City government acquired two water treatment facilities for the locators’ water requirement.

In fact, the Cebu Investment Promotions Center (CIPC) managing director Joel Mari S. Yu said water supply is not going to be a problem at SRP, they could even sell extra supply to the Metropolitan Cebu Water District (MCWD) if they need to.




CIPC is commissioned by the Cebu City government in marketing the 300-hectare SRP.

SRP now has one treatment facility to recycle waste water and another machine that will convert sea water into potable water through desalination process.

Yu said the city government never intended to buy water from MCWD and water supply will never be a cause of concern among interested investors.

SRP is projected to need about 20,000 to 25,000 cubic meters a day if it’s already fully occupied with locators.

Locators will only need about 30 percent potable water, while the rest can be sourced via recycled water.

As for the water problem in Cebu, Yu said MCWD will have to look for other sources, aside from the Ayala consortium offer.

However, he said water problem in Cebu is not as bad as projected because big investors are now currently using other sources of water instead of getting their supply from MCWD.

At the Mactan Export Zone (MEZ1 and 2) for instance, Yu said 60 percent of the water requirement is used for flushing toilet, among other uses, aside from drinking.

“There are now other sources of water supply. Most companies right now are using recycled water technology, or desalination process to cut cost on water bills,” Yu said.

Currently, there is a huge impression that the whole of Cebu is suffering from water shortage. But with the advent of water technology, water recycling for one, investors do not have to worry about water shortage anymore.

Early this year, SM City Cebu adopted the water desalination technology for its water requirement, in order to cut cost on water bills.

“As a big water consumer, we might as well help the community by not depriving them of water supply, so we are using sea water processed through desalination,” said SM City Cebu mall manager Sherry Tuvilla.

By using alternative water supply source, Tuvilla said SM City is expected to save 10 percent of its average P2 million monthly water bills.

In the past, water desalination was not popularly adopted by some big companies and establishments in the Philippines, because of high cost of processing.

However, with improved technology in water, this has become a cheaper alternative for big water consumers, such as manufacturing plants, mall establishments, hotels, among others.

Reportedly, cost of desalinated water has become competitive, and even cheaper than the conventional water supply.

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City to bid out 30 hectares of South Road Properties

The Freeman

Friday, June 1, 2007

There is no stopping the city government from selling the 254-hectare South Road Properties.

Mayor Tomas Osmeña yesterday revealed that the city government will soon bid out 30 hectares of the SRP located in the Mambaling area.



He said the 30-hectare area that is now being negotiated with investors is already cleared and presently undergoing cosmetic jobs like concreting of the fence that will separate it from Mambaling so that the investors at the SRP will not see the urban poor.

The mayor said a certain investor has offered to buy the lot for P2 billion but while the city has not decided on it, the lot is still open for other offers. He said that the lot will be sold at minimum of P7,000 to P13,000 per square meter or around P2 billion to P4 billion for all 30 hectares.

“Hopefully whoever will buy it would do something with it,” Osmeña said.

The mayor said that yesterday morning, he received a phone call from Bigfoot Entertainment asking if they could have one more hectare for their studio expansion.

Last May 8, Bigfoot Entertainment signaled the start of their multi-million expansion project at the controversial facility through a groundbreaking ceremony.

Bigfoot’s two-hectare property at the SRP will house state-of-the-art filmmaking facilities that will be at par with the famous film outfits such as Universal Studios and Warner Brothers Studios.

“Bigfoot is very keen on building their studio beside Pond A. They leased two hectares, now they want the third hectare immediately. They want to expand it, no problem,” the mayor said.

Osmeña also said that he was supposed to meet with Bigfoot and Filinvest last night but the meeting was rescheduled to next week. He added that there is possibility for joint venture between Filinvest, Bigfoot and the city government for the construction of a high-end commercial multi-purpose complex.

At present, he said that Filinvest has hired architects to do the presentation of their plan.

“We are monitoring the real estate market, which is very good at this time. If real estate market is good, even if you are a lousy developer you will make money. But the real estate market now is hot, this is very timely to sell SRP,” he said.

By selling the property, he explained that the city will earn money aside from tax collections and its share of the Internal Revenue Allotment.

The city needs to raise P500 million this year to take care of the city’s debts for its loan from the Japan Bank for International Cooperation for the funds it spent in developing the SRP.

The city government has still a remaining balance of P6.3 billion in its loan with the Japan Bank for International Cooperation as part of the 12.292 billion yen it borrowed from the bank to build the SRP payable in 20 years

Despite the recent issues that are hounding his multi-billion pet project, the mayor said that he does not foresee SRP to be a problem at all. Likewise, he wants the people to know every development in the property because the owners of the property are the people of Cebu.

He said that the only problem with SRP is that it is very risky because it so big.

“Price is not everything, especially for us. SRP is 25 years to pay. It’s not to pay it in Christmas time. We have to give away 10 hectares, 20 hectares a year at 80 percent discount...we can pay that P500 million a year,” Osmeña said.

He said that aside from the revenues that the SRP will provide the city, it would also create jobs, improve economy, and make Cebu City competitive with other cities. “If the Japanese Embassy comes to Cebu, I’ll not charge them, I’ll even pay them,” he said, adding that SRP would bring lots of benefits to Cebu. — Wenna A. Berondo/BRP

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Cebu City Hall to sell 30 has. of South Road Properties to pay P500M loan

Sun.Star
Friday, June 01, 2007


AFTER doing a “cosmetic job” at the South Road Properties (SRP), the Cebu City Government will bid out a 30-hectare lot there to raise the P500 million needed for debt servicing this year.

Mayor Tomas Osmeña said yesterday the 30 hectares will yield more than enough to cover the City’s loan payment for 2007, if sold for at least P7,000 per square meter.


Lots at the SRP can be sold for as much as P14,000 per square meter, and can raise up to P4.2 billion from the 30-hectare property alone, he said.

The City has already paid some P250 million to the Japan Bank for International Cooperation for its SRP loan last February, and is scheduled to make its second and last payment for this year in August, for the same amount.

“That will give us P2 billion if sold at P7,000 per square, or P4 billion if sold at P14,000 per square meter, and P500 million is nothing. That’s why I’ve been saying this is a good project; it’s only risky because it’s a very big project,” Osmeña told reporters.

He is optimistic that developers who have expressed interest to buy land at the SRP will join the bidding, including SM Prime Holdings Inc., Bigfoot Global Solutions, Filinvest and Robinsons Land.

But before the City holds the bidding, the mayor wants to finish a cosmetic job at the SRP and get rid of some eyesores.

“We’re going to bid it out soon but we’ll finish the cosmetic job first. It’s just a concrete fence that will separate the SRP from Mambaling so they will not see any Badjaos and urban poor areas there,” Osmeña said in a news conference at his residence.

It was the mayor’s first press conference since he filed his certificate of candidacy last March 27 and after he had a post-angiogram operation to repair a vein on his upper right thigh last week.

As advised by his doctors, Osmeña will continue to do his paperwork and hold meetings at home until his wound completely heals, to avoid an infection and other complications.

He expects to be back at City Hall in a week’s time.

Also yesterday, the mayor announced the plan for the City to enter into a joint venture with Filinvest and Bigfoot in developing a high-end residential and multi-purpose complex with an international yacht club.

Osmeña believes it is a good time to undertake such kind of development because the real estate market in Cebu is doing well.

“Whatever the joint venture will be, we have to raise P500 million this year to take care of our debt service. I don’t foresee that it’s going to be a problem because we can raise that. The most important consideration we should monitor is the real estate market, which is very good. The market here is very hot,” he added.

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Court dumps plea vs. City South Road Properties deals

Tuesday, May 22, 2007


A CEBU judge found no basis to issue a temporary restraining order (TRO) on Cebu City Government officials’ transactions for the development of the South Road Properties (SRP).

Regional Trial Court (RTC) Judge Soliver Peras ordered the presentation of “affirmative defenses” tomorrow by Cebu City Mayor Tomas Osmeña, the City Council, Cebu Investment Promotions Center (CIPC) Inc. and the Register of Deeds.

Pinoy Votes: Sun.Star Election 2007 Coverage

This is in relation to the civil suit Tinago Barangay Captain Joel Garganera filed to prevent the City Officials, CIPC and the Register of Deeds from marketing, selling, disposing of or leasing the SRP.

Quoting the Court of Appeals, Peras ruled, “For the issuance of the writ of preliminary injunction to be proper, it must be shown that the invasion of the right sought to be protected as material and substantial, that the right of complainant is clear and unmistakable, that there is urgent and paramount necessity for the writ to prevent serious damage.”

He said the “presumption of validity and regularity” in the performance of public functions “cannot be defeated by mere allegations that the said acts are unconstitutional or invalid without any evidence supporting such allegations.”

The judge found basis in the President’s issuance of Proclamation 843, which transferred ownership of the SRP from the National Government to the Cebu City Government and declared such lands as alienable and disposable.

Around two hectares of the property has been leased to Bigfoot Entertainment Philippines, Inc. for 25 years.

This was one of the transactions questioned by Garganera, who said that the President cannot, without congressional authority, amend an earlier proclamation that reserved parcels of land in Pardo and Talisay as public domain.

But since the President’s proclamation was done upon recommendation of the Department of Environment and Natural Resources, Judge Peras said, “The President acted within the confines and limits of the power vested in her by the Constitution.”

In the same 17-page order, Peras also ruled that Garganera is eligible to pursue his lawsuit, but denied the appearance of the Association of Barangay Councils (ABC)-Cebu City Chapter in the case.

While the respondents questioned Garganera’s personality to sue as a taxpayer, the court stated: “When the matter before the court entails public interest, more so that it involves the economic development of the country, the disclosure provision in the Constitution would constitute sufficient authority in upholding the standing of a petitioner.”

The same cannot be said of the ABC, which, Judge Peras said, does not have a direct interest on the matter.

The ABC had wished to intervene in the case since its office is located at the SRP. (JGA)

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Tom to sell South Road Properties lots to pay off city’s debt

Tuesday, May 22, 2007
The Freeman

Pending the resolution of the case filed by Tinago barangay captain Joel Garganera seeking the court’s help to stop the sale of the South Road Properties, Mayor Tomas Osmeña has announced that he will sell more than 30 hectares of lots to pay for the loan from the Japan Bank for International Cooperation.

Osmeña said the SRP lots that he wants to sell are located to the right side of the Mambaling access road.


The mayor expects the city to earn up to P3 billion from the lots if these are sold at P10,000 per square meter.

Osmeña said there are many investors who are interested to join the bidding.

The city’s debt from the JBIC that was used for the reclamation project has already ballooned to more than P5 billion. The city is setting aside P1.7 million everyday to pay for such an obligation.

Osmeña said while the city has a huge debt due to its reclamation project, the SRP has 295 hectares of land that may rake in billions of pesos if these are sold.

But Garganera, who is allied with the opposition leaders in Cebu City, argued that the SRP lots are still not owned by the city because when President Gloria Arroyo issued a proclamation ordering the transfer of the ownership to Cebu City, she made it without congressional authority.

This prompted Garganera to file a civil case before the court in order to clear the issue.

Osmeña flew to Manila on Sunday to see Tony Meer, who used to be the lawyer of former senator Serging Osmeña Jr. and an expert of issues regarding reclamation projects, to get ideas on how to handle the case. — Rene U. Borromeo/BRP

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CIPC to sell 28 hectares of South Road Properties

Sun.Star
Thursday, May 10, 2007

IMMEDIATELY after the elections, the 28-hectare lot 1 area of the South Road Properties (SRP) will be bid out and sold to potential investors.

This was announced by Joel Mari Yu, Cebu Investment and Promotions Center (CIPC) executive director, in a press interview during the ground-breaking ceremonies of Big-foot Entertainment at the SRP last Tuesday.



CIPC is the marketing arm of the 295-hectare SRP.

“It’s a bid for sale, and not lease,” Yu said in an interview.

The SRP management, he said, is looking at a minimum value price of P10,000 per square meter, which means the entire area will cost P2.8 billion.

He said this early, business tycoons are eyeing the prime lot. Yu said both the Sy-led SM Group and the Gokongwei-led Robinsons Group are among those showing great interest to bid for the property. The list is followed by Filinvest, the Ayala Group and Megaworld.

Megaworld is another leading property developer in the country, he added.

Yu said the successful bid out of the 28-hectare property will mean the City Government will not necessary sell the other lots.

“If that is at P2.8 billion, we can already pay half of the balance loan which means other areas can be put up for lease,” he said.

Earlier, SM Prime Holdings Inc. offered to undertake a joint venture with the City Government in developing the entire SRP.
Obligation

In its multi-billion-peso proposal, SM said it also wants to take full obligation of paying the balance of Cebu City Hall’s P6.3-billion loan with the Japan Bank for International Cooperation.

But Yu said the mayor has declined to accept SM’s proposal but will instead provide them a “big chunk,” depending on the detailed financial package submitted.

Based on the proposal it presented to the CIPC, SM wants to build a mall, information technology buildings, residential condominiums and hotels at the SRP.

In a separate interview, Cebu City Mayor Tomas Osmeña is optimistic the entire SRP will undergo fast development in the next three years, contrary to negative speculations that land value will go down.

He said the price of SRP lots will not go down but will instead double in the next few years.

“Everybody likes SRP because of its strategic location. It’s the gateway to the south,” Osmeña said.

Other investors that showed earlier interest to locate at the SRP include Taiwanese firm Paul Yu Group of Companies, JY Construction, Arcenas Group, Pakna-an Central Development Corp., Mactan Rock Industries Corp., King Group of Companies and the University of Cebu.

Integrated

Osmeña said the City Government, the developer of SRP, wants an integrated development for the reclaimed property that includes hospitals, hotels, offices, call centers, business process outsourcing companies and restaurants.

Bigfoot Entertainment, which will lease a two-hectare property at the SRP for 20 years, plans to put up a development similar to Hollywood, USA, complete with restaurants, boutiques and sidewalk shops.

Bigfoot’s soundstage facility will be 4,800 square meters or four times bigger than the 1,200-square-meter (not 370 square meters as earlier reported) facility in Bigfoot Lapu-Lapu City.

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Legal Issues vs. South Road Properties fail to Stop Investors

Sun.Star
Wednesday, May 09, 2007


THE Cebu City Government expects a tremendous impact of Bigfoot Entertainment in terms of livelihood, as the company broke ground at the South Road Properties (SRP) for its “state-of-the-art filmmaking facilities.”

Matt Lubetich, Bigfoot chief operations officer, said the company does not mind the legal issues hounding the SRP, adding that they knew the risks.



“Our chairman’s outlook in life is that opportunity comes so fast. This is a great opportunity and we will take that opportunity no matter what happens. If we will wait (for the issues to be settled), it might take years,” he said.

In a speech, he said they see the potential of Cebu City and the changing landscape of the SRP.

In an interview, he said they will be investing in local talents. The company has even brought in foreign trainers to teach here.

Supportive

“We want to show that we are supportive of Cebu and will put our money down. We’ve been doing that for years. We train you and you work for us,” he said.

Lubetich said that even neighboring Talisay City, whose claim over portions of the SRP delayed its titling for several years, will benefit from their investment at the property.

Impact

Mayor Tomas Osmeña said he knew how a movie industry impacts on the lives of the people and economy where it is based, having lived in the US for 15 years and saw for himself what Hollywood did to the US.

“Beverly Hills would not be there if not for the movie industry. Restaurants, beauty parlors would shut down without the movie industry,” he said.

Yesterday’s ground-breaking was for phase one of Bigfoot’s project in the city.

While it is just renting two hectares of the SRP, it plans to buy 16 hectares more.

Last February, Bigfoot and the City Government signed a memorandum of agreement for the lease of a two-hectare property at the SRP where four studios and a helipad will be built, among others.

Cebu Investments Promotions Center executive director Joel Mari Yu said Bigfoot is preparing for the expansion of its International Academy of Film and Television at the 300-hectare SRP. (RHM

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Bigfoot breaks Ground at South Road Properties

Sun.Star
Wednesday, May 09, 2007


DEVELOPMENTS in Cebu’s film and entertainment sectors are seen to outshine the call center industry, which has been growing fast, a local official said.

Cebu City Mayor Tomas Osmeña is optimistic of the industry’s growth following Bigfoot Entertainment’s 20-year lease of a two-hectare property lot at the South Road Properties.



“The potential of the movie industry to grow is more than the call centers since it requires high end, high volume, and high quality type of employment,” Osmeña said during the groundbreaking ceremonies at the SRP yesterday.

With Bigfoot’s expansion, he believes the move will catapult Cebu as Asia’s next “Hollywood.”

While he views putting up an international film company a “risk,” Osmeña lauded the company for being SRP’s first locator and has pledged to support its endeavors, especially one that will boost the country’s tourism and employment sectors.

Matt Lubetich, Bigfoot Entertainment chief operating officer, said that apart from choosing SRP as a prime location for growth opportunities, he also cited Cebu’s pool of world-class human resource with a high proficiency in the English language, its telecommunication facilities, infrastructure and accessibility as reasons for choosing the province as an investment location.

“Cebu is what we are and what we want. We are here to raise Cebuano’s skills. Filmmaking is a specialty craft but the workforce potential in Cebu is incredible. We have lots of hope here and we are keen on bringing Cebu to the world,” Lubetich told reporters.

To signify its confidence in the province’s local film and entertainment industry, Bigfoot will invest some $3 million to build state-of-the-art filmmaking facilities, office spaces and a hotel.

Four times bigger

According to Lubetich, Bigfoot’s new soundstage facility in SRP will be “four times bigger” than the 370-square-meter facility in Lapu-Lapu City.

The first phase of the development is the construction of the country’s first 4,800-square-meter quad shooting building, comprising four separate studios and a helicopter pad. It also includes production offices, dressing rooms and suites, camera and equipment rooms, among others.

Another facility is a fabrication and mill building, inclusive of a complete set of facilities and equipment for the construction of individually fabricated elements like props, slide sets and more.

Also set to rise are executive suites and a condotel that will serve not only its clients but the public as well.

The hotel will have 85 studio-type suites, a roof deck swimming pool, spa and massager services, gym, café, business center, park and mini-zoo.

Lubetich said the entire development will mirror that of Hollywood, USA, complete with neon lights, big colorful billboards, restaurants, boutiques and sidewalk shops.

He said construction of the buildings will start immediately after the company has secured a building permit. Phase one of the project is targeted to be completed in the next two years.

With regard to its 8,200-square-meter facility in Lapu-Lapu City, he said it will continue to exist, but major operations will now take place in the new site.

Bigfoot Entertainment, which began in 2001, is the parent firm of Bigfoot Productions, Bigfoot Production Services, International Academy of Film and Television, Bigfoot Partners and Bigfoot Sound-works. (MMM)

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Talk back: Half-truths, lies, and the South Road Properties

Sun.Star
Friday, May 04, 2007

By Paul Villarete
Project Manager

ARDHA-Satya Mithya Apeksa Bhayankara. It’s an old Bengali proverb which roughly means, “Half-truth is more dangerous than falsehood.” Another Yiddish proverb states exactly the same thing: "A half-truth is a whole lie."

And half-truths take many forms. Sometimes, it’s mere exaggeration, but oftentimes, it’s stating minimal facts while hiding other more meaningful ones. Whatever it is, the intention is to lie or deceive.


Mary Ann de los Santos’ facts

Let’s try to look at Mary Ann’s alleged facts:

1. The City owes JBIC P7.6 billion for the SRP: The outstanding balance of the loan from JBIC is Yen 11,092,600,000 (source: Land Bank of the Philippines).

Using an exchange rate of 1 Yen = 0.3969 Pesos (Banko Sentral ng Pilipinas, May 3, 2007), the total outstanding loan of Cebu City from JBIC is P4,402,652,940.00. The P7.6 Billion figure is not true, not even a half-truth, but is actually an absolute lie.

2. Every man, woman and child in the City share a debt burden thereon of roughly P70,000.00: If what she says is true and knowing that the population of Cebu City is at least 718,821 (NSO census, 2000), then the total debt of the city must be P50 billion! It’s a flat blatant lie meant to deceive the minds of Cebuanos she wants to be mayor of.

3. The City is paying almost P2 million a day for debt service: In 2006, the City’s amortization was only P566,932,279.97 or approximately 1,553,239.12 a day. The figure given was another exaggeration which is a half-truth meant to sway people’s minds.

But what is significantly withheld is the fact that as of today, one-third of what was remitted actually went to, and became an income of, the national government. The exaggeration and intentional withholding of facts indicates the intent to deceive the public with half-truths.

4. Real estate taxes, business taxes and license fees have been increased tremendously in order to service debt of SRP: One may wonder where the “tremendous” increases are. Increases, if there are any, had been pursuant to the Local Government Code, which mandates such, and not to service debt. It is significant to note that the Code even allows sourcing of funds through loans while limiting debt servicing to 20% of budget, and the City has not exceeded that cap.

To even suggest that incurring such debt payments, which is clearly allowed by the framers of the Local Government Code, is a bad provision of law, makes those honorable gentlemen and ladies, and Congress itself look like idiots! The statement is not true.

Tragedy

But what happens if we imagine of the unrealistic scenario that Mary Ann does win and become mayor?

This kind of tragedy will kick in:

1. The entire SRP is mortgaged to the Land Bank of the Philippines, which means that “turning over” the SRP means going to the LBP and asking them to foreclose on our property because we are unwilling (as opposed to unable) to service our loan.

2. Granting that can be accomplished, we will immediately lose our credit standing, not just with LBP, but will all other banks (domestic and foreign) that will see a Cebu that copped-out of a financial obligation without even trying to make it work. No financial institution, in their right mind, will lend a centavo to a City under this kind of a Mayor.

3. If Mary Ann thinks she can run the City without debt, then God help us…hello, are you on planet Earth? Advanced countries like Germany and Japan used to be the most debt-ridden among the rest, and it is precisely that they have access to capital that they were able to develop! Even Australia has a higher debt than the Philippines.

Half-truth

The debt to every Cebuano is a half-truth. What is conveniently hidden that with the P5 billion loan, we have a property which has a value of at least P15 billion. And that’s even a conservative estimate with the actual value probably ranging from P25 – 35 billion. For every debt a Cebuano is supposed to owe, he/she owns property three to seven times worth.

This is not to mention the other benefits of employment and economic production the SRP will bring in that land we call the SRP that we, each and every Cebuano own. Now, a candidate for mayor proposes to throw that away? Give back to national government P25-35 B worth of properties just to escape the P5 B debt? She’s not even mayor yet and she’s escaping problems instead of facing and solving them head-on as a mayor should.

And throw away P25 – 35 B of our property?

The inadequacies of the City, including all those mentioned by Mary Ann existed before debt-service on the SRP started.

Even without the SRP, the Cebuanos, and their mayor will face the same problem, as any other city in the Philippines or any other developing country. I agree with Joel Mari Yu. “Let us not be our own worst enemies, which is what the international community thinks of us. The SRP is not just a revenue stream, it is our future. We need it to grow, physically and economically, and no Cebuano should doubt this.”

South Reclamation Project

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Osmeña: South Road Properties is a gold mine

Type your summary here
By Antonio V. OsmeÑa
Estatements

THE 2,872,369-square-meter South Road Properties (SRP) of the City of Cebu, assuming that the tract of land is planned as a commercial or light industrial development and that, under the highest and best use, it appears best to subdivided and area into 1,000-square-meter lots.

Assuming further that the balance of the land is devoted to streets, traffic isles and other public uses, then it presumed that a typical development will be done, such as water mains, sanitary sewers, street grading and cement paving, curbs and gutters and other costs, including survey, legal, filing, sales, brokerage, overhead, and cost of raw land should show the developer’s profit.


Pinoy Votes: Sun.Star Election 2007

Assuming again that the total saleable area is 2,010,658 square meters and the selling price is at P25,000 per square meter, then the possible gross income of the project will amount to over P50 billion.

If the selling schedule is properly programmed, then the selling price could go beyond P35,000 per square meter.

It is unfortunate that politicians are putting down the SRP when, in fact, the citizens of Cebu City are the legitimate owners of the reclamation project.

It is the responsibility of Mayor Tomas Osmeña as chief executive of the city to make the SRP profitable.

It is also the responsibility of all concerned citizens, including politicians who are against Mayor Tom, to support and recommend positive suggestions to make the SRP successful and not allow it to happen at the North Reclamation Projects’ political influence of destruction.

Some of our politicians do not realize the great amount of work and expenditure that are required to “produce” land even in a modest urban or suburban development.

Often inaccurate or unfair references are made to the seemingly large spread existing between the developer’s land costs on a per hectare basis and his asking price per square meters of a lot.

The analysis of development costs reveal that the sale price of a site in an average development must yield three to four times the cost of the “raw” land if the undertaking is to prove financially successful.

Although it is difficult to set forth with accuracy specific development costs that will apply to all the various economic areas of the region, an attempt has been made to set forth concrete measures of the kind and amount of expenditures which may be anticipated when subdividing and developing a project area.

Caution, however, needs to be exercised in accepting peso expenditures as typical or representative.

Cost, obviously, will vary with lot and street width, population density, kind and number of utility services, and mode and quality of development improvements.

Mayor Tom’s consultants at the SRP should provide information to the public of such problem so as to determine the highest and best use of the land, to prepare and submit alternate subdivision and development plans, to ascertain by market analysis the prices which the developed sites would command, and the price or value per hectare of the land.

Whenever land is to be allocated to competing uses, care must be taken so as not to violate the economic law of “highest and best land use.”

Since the highest and best use is always determined by the present worth of future rights to income or amenities, consideration must be given to the existence of demand for the use and purposes to which certain sites are dedicated in the overall subdivision plan.

Because business properties are known to bring a much higher price per unit of land, it is a common error to over-provide the amount of space required for commercial use.

Simply designing an area as a business property does not make it one. There must be a demand for business property and that demand, generally, is in direct proportion to the number of people or better, to families, residing in the area.

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Talk back: The South Road Properties

Sun.Star
Tuesday, May 01, 2007

By Joel Mari S. Yu
Managing Director
Cebu Investment Promotions Center

HENRY Louis Mencken (the famous American Editor) once said…”To every problem, there is a solution that is simple, direct and wrong!” Ang atong SRP naay dako nga utang. Atong iuli sa National Government haron wala na tay problema.” Simple, direct and wrong!

Cheking Seares was right. Mary Ann de los Santos fumbled on the SRP, Cheking said, and we applaud, “She doesn’t see it as the most valuable real estate in Cebu, which it will be, once it finally becomes the hub of growth and progress of a city increasingly in need of more space.”

Then Mary Ann fumbled a second time. Instead of letting the issue die, she responded to Cheking’s comments on her faux pas by trying to backtrack and instead claim that “she is open to suggestions.” However, she continues her response by miring herself deeper in her naïve arguments, all backing up her original proposition to turn-over the SRP to the National Government (NG).

These are the facts, devoid of political color.

1. The country’s biggest taipans would all have given their eyeteeth for the opportunity to have done the SRP. Make no mistake about it, real estate is all about location, location and location. The SRP is a one-piece greenfield waterfront property, in an island setting, five minutes away from the Central Business District and the port of Cebu, and not more than 30 minutes away from the International Airport. As a matter of fact, it is 300 hectares of prime space in the heart of the 2nd largest and fastest growing economy in the Philippines. It is not in the boondocks. Its value has since been enhanced tremendously by its being declared a Special Economic Zone by PEZA and Malacañang. No easy feat, even for a Taipan.

Then there is the other issue of privilege. The City of Cebu was granted the exceptional privilege of undertaking and owning this project without having to share land with the NG, and being allowed to avail of Official Development Assistance by way of concessional loans normally only available to the NG. Any other entity undertaking this project would have had to share land with the NG and would have had to raise the money from commercial loans which are at least double what the City of Cebu is paying for our SRP loan.

By the way, greenfield means the property is like a blank piece of paper. It provides the owner 100 per cent latitude on planning, devoid of obstacles like existing structures or squatters. Greenfield is every property developer’s dream.

2. Paying back the loan was never an issue. We have demonstrated that the country’s biggest and most qualified taipans are all interested in acquiring the entire SRP. And mind you, they will willingly borrow money at interest rates much higher than what we are currently paying, to buy it from us – at a tidy profit for us, notwithstanding. And these are the best business minds in the country. If Mary Ann de los Santos turns over the SRP to the NG, it will immediately turn around and sell the property to the same taipans who are trying to deal with us, and make the profit for themselves….making all of us Cebuano’s look like idiots.

At today’s exchange rate, the cost of land (principal plus interest) at our SRP stands at not more than P3,000 per square meters. Even if we only sold it for a measly P5,000, even Mary Ann will not doubt that the property will sell like hotcakes. Every qualified Tom, Dick and Harry will beg, borrow or steal to acquire land at our SRP for that price. The banks will unload their excess liquidity for a land banking opportunity that cannot be greater than this. And we would still make P2,000 profit per square meter, which will come up to a nice tidy figure of no less than P20M per hectare or P4 billion for a net area of approximately 200 hectares.

What is also not common knowledge is that our status as Special Economic Zone grants us franchise on all utilities within the SRP. The City of Cebu has negotiated with Veco for franchise fee of no less than P0.20 on every kilowatt hour sold in the SRP. The selected water operator will pay us P5.00 per cubic meter of water sold and the City will charge up to 10 per cent of gross receipts for all telecommunications receipts there. This does not include fees from LPG and other gasses, and all other fuel vendors, plus service fees from all other contractors and concessionaires in the SRP.

If Mary Ann or anybody else for that matter is impatient over the SRP, it is because the City is evaluating alternatives in the search for an optimal solution that will secure its financial obligation and at the same time provide if the control it will lose if it expediently sold the property to a taipan. The City of Cebu will not lose its shirt by being evaluative and prudent.

Knowing this, would you still turn over the SRP to the NG? In fact, turning over the SRP to the NG is like SM or Ayala or San Miguel asking the banks to take over their enterprises in spite of their assets, revenue and profits, because they don’t like debt.

In closing, I ask, let us not be our own worst enemies, which is what the international community thinks of us. The SRP is not just a revenue stream, it is our future. We need it to grow, physically and economically, and no Cebuano should doubt this.

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SMPHI ‘willing to wait’ for South Road Properties

By Malou M. Mozo
Sun.Star Staff Reporter

“WE are willing to wait.”

This was SM Prime Holdings Inc. (SMPHI) president Hans Sy’s response on queries about the company’s plan to take full control over the 295-hectare (ha) South Road Properties (SRP) in Cebu City.

To signify its confidence over Cebu’s bullish economy, he said SMPHI will not abort plans of long-term development strategies for SRP.

“We can’t make any move yet because we are still awaiting a formal position. There’s no firm offer. It has not reached to the level if we are developers or what. There are many things to settle like the master plan, price, technical details, etcetera, but we are willing to wait,” Sy told reporters.

Sy was in Cebu Friday for the soft opening of the SM City Cebu Northwing, which is a five-level annex to its existing 13.8-ha property at the Cebu North Reclamation Area.

He said the company’s multi-billion-peso offer, which includes “taking over the full obligation of paying” for the balance of Cebu City Hall’s P6.3-billion loan with the Japan Bank for International Cooperation, involves a mixed-use facility and an information technology (IT) park at the SRP.

“It will be another Mall of Asia type of development,” he said.

Capitalizing on the burgeoning growth of the IT sector, SMPHI initially offered a joint venture with the City Government to develop an IT Park within a government-owned lot, similar to that of the Cebu Provincial Government and the Cebu Property Ventures and Development Corp. (CPVDC).

CPVDC, a subsidiary of Ayala Land Holdings Inc., developed the Asiatown IT Park in Barangay Apas, Cebu City.

SMPHI earlier mulled plans to invest P2 billion for the construction of two more malls in the province. The company was eyeing the SRP as a feasible site for one of its malls.

Prospects

He said the construction of the two malls, which are expected to cost P1 billion each including the land value, will begin once SMPHI will find the lot for the projects. The plan is included in the project to put up four more additional malls in the Visayas.

Other prospective sites are Mactan Island and “a little bit farther than Banilad,” Sy added.

“We’re really serious and bullish about Cebu. In fact, it’s our priority area for Visayas and Mindanao projects,” he said earlier.

According to Sy, the company is in the look out for mall expansions, as it foresees growth in the country’s retail sector.

More malls, he said, helps decongest mall traffic.

SMPHI inaugurated last month its SM Bacolod branch in Negros Occidental, bringing to four the total number of malls in the Visayas.

In addition, SMPHI and the Iloilo government are now finalizing the bidding to develop a 54-ha lot of the Iloilo Airport for another mixed-use facility, which includes residential and IT park developments.

Meanwhile, the 10.9-ha annex in SM City Cebu, dubbed the Northwing, is estimated to cost between P200 million and P300 million and is expected to open next month.

It has 171 leasable spaces and has 148 tenants. Its parking spaces on three floors and the roof deck can accommodate about 1,946 vehicles.

The Northwing, which is designed for the upper class market, will house upscale shops, specialty shops, a comfort lounge, concierge, entertainment area and restaurants.

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Talk back: Stand on the South Road Properties

Sun.Star
Saturday, April 28, 2007

By Mary Ann de los Santos

(This letter is addressed to Pachico A. Seares)

IT pains me to note that you have not grasped fully my stand on the South Road Properties (SRP).

Let me tell you here and now that I am open to suggestions.

My idea to turn-over the SRP to the National Government is but one of the options.

To my mind, it is the simplest and most viable option for two reasons:

1. The SRP is covered by a sovereign debt with the Japan Bank for International Cooperation guaranteed by the National Government.

Legal complications can be avoided if the debt is assumed by the government instead of following Mayor Tomas Osmeña’s plan to sell it wholesale to the big taipans.

Besides, the National Government can later on deal with these taipans concerning the SRP in the same manner that Mayor Osmeña can.

But in the meantime, we will no longer be saddled with debt servicing and we can spend the savings on delivery of basic services and other necessary infrastructure projects.

2. Upon turning the SRP over to the National Government, we can undertake a Memorandum of Agreement that would give us some kind of control or participation in SRP’s development, something more difficult to do with private entities which have their own plan.

The SRP was turned over to the City in 2001 under the administration of Mayor Alvin Garcia.

During Mayor Osmeña’s first two terms, he did nothing to move the project forward.

I think five years is a lot of time for any mayor for that matter to market the SRP.

Instead of master planning and land-use zoning the SRP, the mayor has randomly constructed ill-conceived structures therein, including an ABC building, which is built probably in the most prime area of the SRP.

How can you market the SRP under these conditions?

I beg to disagree with your statement that “she doesn’t see it as most valuable real estate in Cebu, which it will be once it finally becomes hub of growth and progress of a city increasingly in need of more space.”

I`m sorry I cannot see your point.

SRP’s character “as a hub of growth and progress of a city increasingly in need of more space” is not lost even if it is turned over to the National Government.

SRP is here to stay; it cannot be physically uprooted from Cebu.

Once developed, all taxes will accrue to our city.

There will be no change except that the City will no longer pay P2 million a day in debt servicing.

Let me reiterate: I am open to other ideas on the SRP.

All I know is that the present course is not workable.

If we stay the present course, we will end up bankrupt or disposing the whole SRP in a fire sale, just like what Mayor Osmeña did on the City Hall block in the North Reclamation Area.

(He sold it to Robinsons at less than P12,000 per square meter.)

Let us get involved in our city’s future.

Let us think of alternatives and options to free ourselves from the debt quagmire we are in.

If you have better ideas, come out with it, I am open.

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Mary Ann wants nat'l gov't to take over South Road Properties

The Freeman 04/24/2007

Once elected mayor, Mary Ann delos Santos said she would turn over the 295-hectare South Road Properties to the national government so the city will no longer need to pay its daily debt of P1.7 million.

The barangay captain of Lahug announced this plan in a forum attended by different sectors wishing to know the program of government of her and reelectionist Mayor Tomas Osmeña.

Delos Santos believed that with the huge obligation to the Japan Bank for International Cooperation, it would be impossible for the city to progress whoever will sit as mayor.

She said it would be difficult for the city to pay its debt, which is now reportedly reached to over P5 billion, because it could not sell the SRP lots due to the ownership issue.

Tinago barangay captain Joel Garganera, an ally of Delos Santos, had filed a case against Osmeña and the city asking the court to prohibit them from selling the SRP.

Garganera argued that the SRP is still owned by the national government because President Gloria Macapagal-Arroyo had no congressional authority when she issued a proclamation order in 2005 transferring the ownership of SRP to the city government.

"Kon dili na kita mobayad sa tag P1.7 milyones matag adlaw, daghan na og kwarta ang syudad nga magamit alang sa mga basic services nga makahatag og kaayohan sa katawhan," said Delos Santos.

But Felix Taguiam of the Cebu Chamber of Commerce and Industry described Delos Santos' plan as "anti-business" that could be disadvantageous to the city.

In his reaction to the plan of Delos Santos, Osmeña said: "That's the difference between me and my political opponents. I like to build, they also want to destroy just like the old Ramos market building." - Rene Borromeo/LPM

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