At least one company is interested in buying the 26.3 hectare lot at the South Road Properties (SRP) where the San Pedro Calungsod shrine is located.
Ronald Tumao, VP for marketing research and planning of SM Prime Holdings wrote Cebu City Mayor Michael Rama to express the company’s desire to acquire the lot known as lot 8-B with an area of 263, 384 sq. m.
During yesterday’s City Council budget meeting, City Administrator Jose Marie Poblete said they will hold a public bidding for the property next year with the price set at P22,000 per square meter.
If sold, this will give the Cebu City government at least P5.4 billion in revenues that will fund Cebu City Mayor Michael Rama’s P10.5 billion budget next year.
The lot was used for the Calungsod Thanksgiving Mass last year.
“For clarity, we have attached and made an integral part of this correspondence a subdivision plan setting forth and locating, metes and bounds of said property. We trust that you will find the foregoing in order and look forward to your prompt favorable response,” Tumao’s letter to Rama read.
Expansion
Poblete told the council that Tumao stated in his letter that top management would like to meet with Cebu City officials “at their most convenient time to further discuss the offer.”
Jose Daluz, Rama’s executive assistant, said SM wanted to use lot 8-B as an expansion of their existing development site at the SRP.
He said he is confident that SM will preserve the Calungsod shrine if they acquire the property.
Poblete said lot 8-B was already appraised by government appraisers at P16,000 per square meters.
In bidding the property, the city will start with a floor price of P22,000 per square meter.
But Poblete said the winning buyer is required to pay 50 percent of the total value after issuance of notice of award.
The remaining 50 percent will be paid after the issuance of a lot title in favor of the buyer.
Terms of sales
Still, Councilor Margot Osmeña questioned why the lot would be sold since Rama earlier wanted to declare the property as a historical site.
Councilor Hans Abella also asked what will happen to plans of using the lot for the 2016 Eucharistic Congress and papal visit.
“Even if the sale is finalized, we will make it a point that the city will still be allowed to use it for the event. We will put that in the terms of the sales,” Poblete said.
Poblete said they will place newspaper ads during the first quarter of 2014 to invite other interested buyers of lot 8-B.
As of yesterday, only SM expressed interest in the property.
Standard procedure requires that an ad be placed in newspapers to run for 45 days before bidding takes place.
Letters of intent from interested bidders will have to be submitted to the Awards Committee which will be created created by the mayor.
Daluz said the mayor also has to appoint urban planners as his consultants to the committee on awards to help formulate the terms of reference of the bidding process.
Rama will then endorse to the council the winning bidder for their approval.