Optimistic city hall will approve: PB gives go signal for Ciudad project

CEBU, Philippines – The Cebu Provincial Board is optimistic that the proposed P1.2 billion Ciudad project in Banilad, Cebu City, which has been stalled for years, can now move forward.

This was after the legislative body yesterday granted Cebu Governor Hilario Davide III the authority to sign and execute an amended build-transfer-operate agreement with Fifth Avenue Development Corporation, proponent and developer of the mixed-use development project located on a P2.8-hectare province-owned lot.

Among the stipulations incorporated in the amended BTO is for Fifth Avenue to reserve a 2,000-square meter area to be used as park and open space, and for it to shoulder the payment of the real property taxes instead of the Capitol.

The accord would also grant consent to Fifth Avenue to execute a financial arrangement with Filinvest Land Inc.

The original BTO allows Fifth Avenue to transfer any of its rights and benefits to a third party, such as FLI, in restructuring the financing packages for the Ciudad project, with the consent of Cebu Province.

Last June, Fifth Avenue entered into a memorandum of understanding for FLI to finance the development costs of the Ciudad property.

Under the MOU, FLI would manage the development, construction, operation and maintenance of the project, as well as undertake the marketing and leasing of units and facilities to be derived from the project.

Fifth Avenue signified its interest to resume the Ciudad project after the Cebu Province granted Cebu Property Ventures and Development Corporation access to Governor Manuel Cuenco Avenue through the province-owned lot behind the Cebu I.T. Park and two proposed access roads that would cut through the Ciudad site.

Board Member Peter John Calderon, who sponsored the resolution for the authority, said the agreement was beneficial to the interests of both parties and that the amendment was made to cope with the situations that affected the project.

The Capitol had executed a BTO agreement in September 2006 during the time of former governor, now third district Representative Gwendolyn Garcia for the Ciudad project, but it was not implemented.

The souring of the political relationship between Garcia and then Cebu City mayor Tomas Osmeña caused the delay of the Ciudad project because the latter opposed the project due to perceived detrimental effects to the environment, traffic, and employment in the area.

The City Council also issued a moratorium to any development in the Banilad-Talamban area, which prevented the Capitol and Fifth Avenue from continuing with the project.

Fifth Avenue Development Corp. included in its plan to open four roads that can decongest traffic in the Banilad-Talamban area.

The resolution granting authority to Davide was deferred last week as some Board members wanted to examine the content of the stipulations. — /RHM (FREEMAN)