Guv requests Capitol share in sale of lot donated in 1964

CEBU, Philippines - To help northern Cebu Yolanda survivors, Governor Hilario Davide III is asking the Cebu City Government for a 50-percent share in the proceeds of the sale of a 2,357-square-meter lot in Barangay Lahug, which the province donated in 1964.

“If it is not too much to ask, may we ask the City for a one-half share in the proceeds to help our constituents in northern Cebu who were affected by typhoon Yolanda? We know that you have already extended financial assistance to the ra-vaged towns in northern Cebu and we thank you very much for it. But we suppose a little more help from you will not hurt,” stated a Feb.26 letter addressed to Mayor Michael Rama.

“Our constituents are fore-ver grateful for your help. We hope the city will accede to this request,” the governor said.

The letter-request was in the agenda during the Cebu City Council’s regular session last March 12, but the body referred it to the Office of the Mayor as it was addressed to Rama.

The property was one of 201 properties donated to the city government by the Province of Cebu in 1964, which was questioned in court.

In a 1974 compromise agreement, the province paid the city P1.5 million to revive ownership of the donated properties, but 11 lots, including Lot No. 917, were not included.

Though the City’s ownership of the 11 lots, was recognized by the Cebu Provincial Government, it came with the condition that they should only be used for parks and playgrounds.

However, in 2005, Provincial Board Resolution No. 880-2005 amended the agreement and “cancelled all restrictions or conditions on the use of the property annotated on the certificate of title covering lot 917.”

The lot, located along Salinas Drive across the Asiatown I.T. Park and adjacent to the Waterfront Cebu City Hotel and Casino in Barangay Lahug, was awarded to Hotel Asia Incorporated after it posted the winning bid of P35,000 per square meter December last year.  The amount is P500 higher than the floor price set by the City Committee on Awards.

Last Jan. 10, Hotel Asia Inc. paid the city a partial amount of P46.09 million representing 50 percent of the total cost of the property, which can only be utilized for hotel, condominium, office spaces.

Per condition set in the sale, any development would start two years from the transfer of the land title, which hit a snag after Waterfront Hotel, who would have wanted to purchase the property, contested the disposal of the lot.

In a letter, Waterfront Group chief engineer Vicente Lazaro, asked for reconsideration on the matter. Copies of his letter were furnished to the Cebu City Council and City Committee on Awards Chairman Jose Daluz III.

Lazaro pointed out that then mayor Tomas Osmeña promised them in 2005 that Waterfront would be informed if ever the property would be bid out.

Daluz, though, said the bidding schedule of the property was published in the local newspapers.

“There was no letter of intent coming from Waterfront that they will purchase the lot. It’s already too late, naa na ta’y (we already awarded it to a) buyer so wala na tay mahimo (we cannot accommodate them anymore),” he earlier told The FREEMAN.

Due to Lazaro’s letter, the deed of sale and deed of conditional sale signing between Rama, representing the city, and Hotel Asia Inc. was deferred for a week, as he does not have yet an authority from the City Council.

The council had referred Lazaro’s letter to the committee on award, the committee on laws, and the City Attorney’s Office for review and requested the said bodies to submit their respective re-commendations in its regular session Wednesday next week. (FREEMAN)