City dad questions lease rate of NRA prime lot

CEBU, Philippines – The proposed ordinance covering the lease of 33,737 square meters of prime property at the North Reclamation Area at P25 per square meter hits a bump at the City Council after Councilor Augustus Pe questioned the rate of lease.

In last Wednesday’s regular session of the council, Pe said it should be determined first whether the proposed rate of P25 per square meter concurs to the present rate of renting properties at the NRA.

The proposed ordinance was referred to the council’s Committee on Laws for further study.

The prime property being referred to as Block 27 is expected to earn the city some P1 million every month when leased with the proposed amount per square meter. The property has been idle for quite sometime and is being used presently as impounding area of the General Service Office and the City Traffic Operations Management.

The property is adjacent to SM City.

The lease ordinance, authored by Councilor Jose Daluz, says the proposed lease rate of P25 per square meter is still subject to increase per annual evaluation and as recommended by the City Appraisal Committee “without prejudice to existing lease agreements.”

Last week, City Administrator Francisco Fernandez sent a letter to the council and asked to pass an ordinance to lease Block 27 at P25 per square meter.

Fernandez said the proposed lease rate is based on the lease rates of properties at the South Road Properties.

Other than the income from the lease, Fernandez said the city would also gain from the business taxes of establishments that will operate in the area.

The proposal to lease Block 27 came after several businessmen made offers to lease city-owned lots. – Ferliza C. Contratista/JMO (THE FREEMAN)