In just 20 minutes, the Manila City government auctioned off the Grand Boulevard Hotel (GBH) yesterday to recover the P106 million in real property taxes owed by the hotel management.
Manila City Legal Officer Renato dela Cruz, who is the chairman of the committee on public auction, said the Pacific Wide Realty and Development Corp. (PWRDC) bought the 6,444.10-square meter property for P106,650,000.
Dela Cruz said the GBH owed the city government P106,636,789 in real estate taxes and another P70 million in unpaid mayor’s permit and business permit, or a total of P176 million. The auction only covered their real property tax liability.
Dela Cruz said the city government will try to recover the balance of P70 million through the GBH’s other assets. “We would run after other properties of Grand Boulevard. Little by little we are recovering the amounts long overdue us. We need the money too badly. This (amount) would go to the general fund of the city to finance projects.”
City Treasurer Liberty Toledo said the P106 million real property tax liability is a small amount compared to the market value of the hotel, estimated to be worth P538 million. She said the city government earned P13,210.20 from the floor price.
“This is a good way to raise revenue for the city. This sends a strong message to pay taxes properly. This would also make taxpayers become more aware of their responsibilities to the city and they have to pay up,” she said.
Apart from owing the Manila City government, GBH reportedly also incurred other debts but it appeared that PWRDC already paid off 90 percent of the hotel’s creditors.
Under the law, the GBH management could still regain ownership of the establishment. “I will issue a certificate of sale to the winning bidder and Grand Boulevard would be furnished a copy of the certificate but they would still have one year to redeem or pay us to get back the hotel. They would also have to pay the two percent monthly interest,” Toledo said.
The PWRDC will own the hotel, including the machines and improvements in the structure.