The Cebu City government is P607.5 million richer after Filinvest Land Inc. (FLI) turned over a check for the the balance of its minimum guarantee payment for the first phase development of a 10-hectare lot in the South Road Properties (SRP) under a joint venture agreement.
A manager’s check was presented to Mayor Michael Rama in his office past 4 p.m. yesterday by Filinvest director Joseph Yap and Tristan Las Marias, first vice president for Visayas and Mindanao.
Vice Mayor Edgar Labella and several department heads were present.
This will form part of the city’s revenue collection to fund this year’s P5.9 billion budget.
“Anything that is being received will be good for the city but this may not be sufficient to address all of our needs,” Rama told reporters.
Rama said the city still has to look for other revenue options like improved tax collection efficiency and tax mapping.
“We will be reviewing other ventures at the SRP so that the conversion of the property will be liquid rather than remaining a barren piece of land,” he said.
To date, Filinvest has remitted to the city a total of P2.25 billion, said the real estate developer.
This includes the city’s revenue share in the SRP joint venture and purchase payments for Pond F properties.
“FLI’s payment today to complete the minimum guarantee shows our strong commitment to the joint venture and support to the City,” said Yap in a statement.
“We remain bullish and committed to SRP’s development as it emerges to become the new and most exciting seaside destination in Cebu for both residence and leisure.”
Filinvest’s expansion in the SRP includes the 50.4-hectare Citta di Mare (City by the Sea), a residential community with eight completed medium-rise buildings.
City Hall had been negotiating with Filinvest officials for the release of the guarantee fee payment under their 2009 joint venture agreement.
A computation attached to Yap’s earlier letter said Filinvest already made initial payments of P309.7 million in four tranches from December 2012 to December 2013 leaving a balance of P607.5 million.