Rama says SRP greenlight is a ‘victory for Cebu City’
Cebu City Mayor Michael Rama said he was “happy and surprised” with the City Council resolution authorizing him to sell portions of the South Road Properties (SRP) to interested buyers.
“Praise the Lord, halleluiah! The people have spoken and the victory is for the people. The time has come that the needs of the people are now (addressed) by the council,” Rama said in a press conference yesterday.
The City Council voted 9 to 7 passing the measure with four BO-PK councilors– Gerardo Carillo, Richard Osmeña, Nestor Archival Sr., Roberto Cabarrubias and Noel Wenceslao– and five councilors allied with Rama supporting it.
They outnumbered seven BO-PK councilors who voted against it.
Rama just returned Wednesday after a month-long vacation in the United States.
Revenue
Rama said he hopes to sell three SRP lots which total 45.2 hectares as soon as possible “because the needs of the people are also as soon as possible.”
Cebu City had been receiving proposals from investors interested in the property: Lot no. 8 where the San Pedro Calungsod templete stands and Lots 7 and 17.
Lot no. 8 occupies 26 hectares while Lots 7 and 17 cover 19.2 hectares.
Under the resolution, the floor price for the SRP lots shouldn’t be lower than P20,000 per square meter.
This means the city can generate a conservative revenue of P9 billion if it can sell all 45.2-hectares.
Public bidding
The resolution said the lots should be sold through public bidding.
“With the authority to sell being given, those investors still hiding will be coming. And because of the public bidding, everyone will be on the same playing field,” Rama said.
Carillo denied that their support meant they are switching to Team Rama.
“What we did is for the benefit of Cebu City and not for any political party. That’s the reason at the outset. I said that our action transcends our political affiliation,” Carillo said.
In their resolution, the councilors said new SRP lot sales had to be made to make additional fund sources available to fund the city’s obligations to senior citizens, government scholars and its medical assistance program.
Depleting
Having extra cash would also allow the city to pay off a P3 billion balance of Cebu City’s loan obligation with the Japan International Cooperation Agency (JICA) for the 300-hectare South Reclamation Project now known as the South Road Properties.
Carillo said selling SRP lots is a better alternative than the executive department’s earlier plan to apply for a low interest yielding loan to buy out the city’s existing loan.
The city has sold SRP lots to SM Prime holdings, Inc. and Filinvest Land, Inc. and leased land to Bigfoot Studios Inc.
A total of P5.8 billion was earned from the three transactions during the term of former mayor Tomas Osmeña.
However, the city’s revenues from the three lot sales is now “depleting.”
Of the P5.8 billion proceeds, the city stands to collect remaining receivables of P588 million until 2016.
Reservations
The councilors who signed the resolution said funding is needed for the reconstruction of the Cebu City Medical Center (CCMC) and the city’s preparations for next year’s APEC summit and the 2016 International Eucharistic Congress.
The city government, they said, would have to also spend on improving the city’s traffic, drainage and storm water systems and other priority infrastructure projects.
Former Cebu City congressman Tomas Osmeña said he plans to invite his BO-PK partymates to a meeting to discuss the resolution. He earlier said the aggressive push to sell could only mean City Hall has a “cash flow problem” and needs the money.
Councilor Eugenio Gabuya withdrew as co-sponsor of the resolution.
He said he has reservations about selling SRP lots through public bidding rather than through unsolicited proposals as stated under City Ordinance No. 2332, an option which would require an investor to show what kind of development would be introduced. /With Chief of Reporters Doris C. Bongcac
Related Stories:
It’s official: Rama can now sell SRP lots
Rama gets green light to sell portions of SRP
Councilors back SRP lot sale
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