Opposition to reintroduce JVA but only for lease
GARCIA and OSMEÑA
Kawit Development
Opposition Cebu City Councilor Raymond Alvin Garcia is willing to reintroduce the resolution, allowing Mayor Tomas Osmeña to enter into a Joint Venture Agreement (JVA) with Universal Hotels and Resorts Inc. (UHRI) for the development of Kawit Island but only if the agreement is a straightforward lease.
But Osmeña insists that the sharing scheme is the appropriate agreement for the P18 billion development, where the city gets 10 percent of the gross shares of UHRI.
“Who does he think he is? Why, is he the one renting? Fine. How come you did not come up with a better offer?” Osmeña said.
Garcia filed a resolution urging Osmeña to consider reintroducing the P18-billion Joint Venture Agreement (JVA) to “adopt a straight rental fixed amount with escalation clause or a lease scheme.”
His proposal is still pending for deliberation.
Garcia’s resolution states that the JVA’s current arrangement, which grants a 90 – 10 percent sharing scheme in favor of Universal Hotels and Resorts Inc. (UHRI), is disadvantageous to Cebu City.
“An P18-billion project in SRP will generate jobs for the Cebuanos, assuming the proponent and the city government could agree to mutually beneficial terms, it is undoubtedly advantageous to the City,” said Garcia.
UHRI is the development arm of JG -Summit Holdings Inc., owned and operated by tycoon John Gokongwei.
All members from the opposition voted against the resolution after agreeing with Councilor Joel Garganera that a sharing scheme, with the city gaining only 10 percent of the gross sales, is disadvantageous. He instead proposed a straight lease.
Councilor Jose Daluz III earlier said the resolution, authored by Councilor Eugenio Gabuya Jr. authorizing Osmeña to enter into a JVA with UHRI, cannot be reintroduced except by members of the council who voted against it.
“Why are they making their own laws? Is Daluz the SC (Supreme Court), the congress,” Osmeña said.
The mayor said the City Legal Office will work on the details of the JVA.
“Let our legal work on that,” he added.
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