Only two of six Cebu City-owned lots that the executive department wants to sell are authorized by the Cebu City Council.
But Cebu City Hall’s executive department is confident that it can sell all six lots, five of which are at the South Road Properties (SRP), to fund more than half or P10.6 billion of the proposed P18.9-billion annual budget for 2015.
“We are confident that we can get council approval after Lots 1 and 2 are sold,” said City Administrator Lucelle Mercado in a presentation of fund sources to the media before the Local Finance Committee presentation to the council.
Last August, the Council approved a resolution authorizing the mayor to sell Lots 1 and 2 which are the San Pedro Calungsod templete site and the area beside Filinvest.
It later led to the defection of three Bando-Osmena Pundok Kauswagan (BOPK) councilors from the party who formed an independent bloc.
Down payment
SRP manager Roberto “Bo” Varquez said they expect a P5.2-billion revenue from Lot 1 which is 26 hectares, at a price of P20,000 per square meter.
Another P3.8 billion is expected from the sale of Lot 2, which is 19.2 hectares, at P20,000 per square meter.
Due to the size of these lots, the city government expects only a 50-percent down payment next year, which is specified in the Terms of Reference (TOR) included in the resolution authorizing the mayor to sell the SRP lots, Varquez said.
“We have already received three letters of interest for the Pedro Calungsod templete lot. These are from SM Prime Holdings, Robinson’s Land and Eaton Properties which is eyeing the SRP as their first property development area in Cebu. These have been submitted to the Mayor’s Office,” Varquez told the council.
He said the Bids and Awards Committee currently prepares the TOR for the two lots and that they’re hoping that they could bid the lots out by the first quarter of 2015.
Fund sources
During yesterday’s budget hearing, the Local Finance Committee presented to the Council the different fund sources for their proposed annual budget.
These include real property taxes at P1 billion, other local taxes at P1.6 billion, non-tax revenue at P770 million, Internal Revenue Allotment at P1.38 billion and economic zone revenue at P105 million.