ALI may proceed with Negros Occidental project

Bacolod City , Philippines   â€“ Ayala Land Inc. may finally be able to proceed with the development of  a disputed Negros Occidental  provincial government property , according to Gov. Alfredo Marañon Jr., on the condition that the provincial government  demolishes two provincial capitol buildings situated in the 40,481-square meter property (4.04 hectares)  that would be leased by ALI.

Provincial administrator Enrique Pinongan, in a separate interview, said the clearing of the area is one of the conditions set by ALI for paying the lease before this year ends.

The 40,481-square meter property encompasses the areas from the side of the Philippine National Bank down to Aguinaldo St. where the buildings of the Provincial Agriculturist’s Office (PAO) and the Provincial Environment Management Office (PEMO) are situated, and part of the back of the provincial capitol along Gatuslao St.

Marañon said the demolition of PAO and PEMO buildings would start soon, so ALI could start developing the property before the year ends.

Employees of the said offices have begun transferring their office equipment to one of the adjacent provincial capitol buildings, he added.

Marañon explained that ALI would start work on the leased portion only, but would hold off work on the areas to be purchased until the court resolves the SMPHI case.

The 40,481-square meter property is part of the 77,068-square meter (7.7 hectares) property surrounding the Provincial Capitol that ALI originally intended to lease and purchase from the provincial government.

In July 2011, the Provincial Capitol’s Committee on Awards and Disposal of Real Properties  awarded the lease of 40,481 square meters (4.04 hectares) and the sale of 36,587 square meters (3.6 hectares) to ALI.

But rival bidder, SM Prime Holdings Inc. (SMPHI)  filed a petition before the Regional Trial Court in Bacolod seeking the annulment of any negotiated sale and lease of the provincial government property to ALI.

SMPHI is questioning the bidding process and subsequently, the decision of the provincial government to award the sale and lease of the 7.7-hectare Capitol property to ALI.

SMPHI  maintains that it was the rightful winner during the July 7, 2011 bidding on the said property.

The SMPHI case is still pending before the Bacolod Regional Trial Court Branch 50.

In the contract for lease signed only on April 27, 2012, ALI agreed to lease 4.0481 hectares of the property, at P2,955,133 a month, with the  rent increasing at 10 percent every five years and ALI paying a  deposit  of P35,461,356 covering the one-year rent.

In the deed of sale, ALI agreed to purchase from the provincial government 3.6587 hectares of the adjacent property located at the back of the provincial capitol building along Gatuslao St. worth P750,033,500, subject to an initial payment of 50 percent, with the balance to be paid on a quarterly basis over a one-year period.