City: We own Citicenter

CEBU, Philippines - The Cebu City Government asserts ownership and right to develop the 7,281-square meter Citicenter Commercial Complex in barangay Kamagayan after a certain Baldomero C. Falcone claimed ownership over the property.

Sto. Niño de Cebu Developers Inc., which Falcone owns, earlier expressed opposition to the plan of the City to develop the Citicenter because he claimed to have legally won the bidding from the Development Bank of the Philippines (DBP) in the early years.

His letter endorsed to the Council last December was submitted for legal opinion at the City Legal Office.

The City Legal rendered its opinion on March 9 saying that the City has every right to develop the property because it was able to prove its ownership of the subject property.

“As there can be no other piece of evidence more worthy of credence than a Torrens Certificate of Title, while Mr. Falcone failed to present any evidence to substantiate his claim of ownership or right even to the possession of the land,” said Assistant City Attorney Lyndon Basan.

The claim of Falcone was not supported by documents. But the city legal office conducted a thorough research to trace the events and documents.

The city legal found that contrary to the claim, the Citicenter was originally covered by a title under the name of Citi Commercial Corporation and not Sto. Niño de Cebu Developers Inc.

In 1983, the property was constituted by Citicenter as security for the loan in the amount of P3 million in favor of Permanent Savings and Loan Bank, which was subsequently closed and placed under receivership by the Central Bank of the Philippines.

All obligations and assets of the closed bank were later assumed by the Philippine Deposit Insurance Corp by virtue of the law.

PDIC was subrogated to the rights of the Permanent Savings and Loan Bank and effectively, PDIC became the new mortgagee.

“While the loan was unpaid, Citicenter likewise incurred delinquency in the payment of its real estate tax to the City. The total tax liability was P1,879,136.08 covering taxable years 1980 to 1989 and 1997 to 2002,” the opinion reads.

To satisfy the tax obligation of Citicenter, the City sold the property in public auction on December 2003. Since there was no bidder, the local treasurer purchased the property in behalf of the City.

The registered owner failed to redeem the property so it was transferred to the name of the city.

The documents used to transfer the certificate of title are the Final Bill of Sale dated August 2010 and a letter of request to the City Registrar of Deeds for the transfer of title of the land under the ownership of the city.

In 2008, PDIC approved the settlement of the loan by the City Government. The City then paid P14.144 million to PDIC.

“Based from the foregoing facts and after a careful evaluation and scrutiny of the pertinent documents which form part of the records of the instants case, there is no doubt that Cebu City Government possesses a legal title over the property in question,” the legal opinion reads. — (FREEMAN)