City government expects to earn P1 million monthly from North Recla lots

CEBU, Philippines - The Cebu City government will be earning close to P1 million every month from the rentals of 33,737 square meters lot at the North Reclamation Area that will be leased by the Dakay Construction and Development Corporation.

In a report to the City Council, city administrator Francisco “Bimbo” Fernandez explained that the Dakay Construction and Dev’t. Corp. is the highest bidder among three other companies that participated in the bidding.

Fernandez said that the Dakay Construction and Dev’t. Corp. offered to lease the lot at P31 per square meter. The three other firms are Dakay Estates and Development, Inc.; VisCebu Development Corporation, and Macro Tires Inc.

The proposed term of lease contract of the lot is 15 years and renewable for the same period. The City Council approved the lease contract and allowed Mayor Tomas Osmeña to sign it in the presence of officials from the Dakay Construction firm.

“Maayo na lang nga maka-income ang City Hall kaysa karon nga wala g’yod magamit kining maong yuta diha sa north reclamation,” a city councilor made this side comment.

Upon the signing of the contract, the lessee shall pay the city an advance rental equivalent to one month.

Aside from the advance rental, the city will also require payment of advance deposits equivalent to two months.

Should the lessee opt to terminate the contract before the end of the 15 years contract, the deposit shall not be refunded to the lessee.

But if the lessee fails to pay the rentals due for two consecutive months, the lessee shall be considered in default and the lease contract shall be terminated. — Rene U. Borromeo/MEEV   (FREEMAN NEWS)