SM-Ayala group gets OK to develop SRP lot

More developments are expected at the South Road Properties with the City Council’s approval for SM-Ayala group to develop a 26-hectare lot in the area (CDN FILE PHOTO).

THE SM-Ayala consortium may soon start developing the 26-hectare lot in the South Road Properties (SRP) which they bought from the Cebu City government.

This after the Cebu City Council passed a resolution expressing its consent to the consortium’s plan to develop the area into an Information Technology (IT) Park — a requirement which the consortium needed for their registration agreement with the Philippine Economic Zone Authority (PEZA).

But City Councilor Joy Pesquera, who rendered a committee report supporting the request of SM and Ayala, said that the consortium should still follow the rules and regulations of the city government.

“It is important to remind the consortium that even when said subject property will be declared as an IT Park, they have to comply with all the Regulatory Laws and Ordinances existing in the City of Cebu and that all locators therein have to secure the corresponding regulatory permits and pay the regulatory fees,” read the report and resolution of Pesquera, which was approved by the council.

Lawyers Romulo Alajid and Nerissa Jose Mediano of Ayala Land Inc. (ALI) and Cebu Holdings Inc. (CHI) and Lawyer Maria Eloisa Fernan of SM Prime Holdings earlier wrote Vice Mayor Edgardo Labella asking for the council’s endorsement.

They wanted PEZA to amend its Certificate of Registration and the Registration Agreement between PEZA and the city government in order to carve out the property they purchased.

But when sought for comment, Cebu City Mayor Tomas Osmeña said he was not in favor of the council’s move.

He said there are two forms of abuse with PEZA accredited institutions: first is that they are not really considered as exporters, and second is PEZA doesn’t have parking requirements, which he said is creating a “major disaster” like in the existing Cebu IT Park.

He said that he was not sure if his approval would be needed for the council’s granting of their consent to SM-Ayala group to develop that SRP lot.

He said he was sure that he would push through with his plan to rescind the contract entered into the city government with SM-Ayala and FLI over the sale of the lot.