Rama challenges hotel to double bid price to get the contested lot

CEBU, Philippines - Cebu City Mayor Michael Rama has asked Waterfront Cebu City Hotel and Casino to pay P60,000 per square meter for the lot it contested in Barangay Lahug.

Rama issued the challenge after WCCHC protested the selling of the lot to its rival, Hotel Asia Inc.

The amount is twice the Hotel Asia Inc. bid out to the city government.

“Unsa man gyud gusto sa Waterfront? Are they willing to pay P60,000 square meter kay ako estoryahan ang Hotel Asia? Are they really willing to pay more and pay back the winning bidder (Hotel Asia Inc)? Kay ila naman gyod gisamok-samok ang syudad,” Rama said.

Councilor Gerardo Carillo, a lawyer, said the mayor has the prerogative to impose a floor price and even award it to another interested investor.

The City Council has yet to authorize Rama to enter into and sign the Deed of Sale and Deed of Conditional Sale with Hotel Asia Inc. as the highest bidder in order to consummate the sale, facilitate the transfer of the certificate of title and other processes in relation to the bid-out property.

But Carillo said this would lead to another protest from Hotel Asia saying “the city has already created an obligation (to Hotel Asia Inc) that has to be respected.”

“It is the call of the mayor. If that would happen the city should reimburse the down payment of the awarded bidder,” he said adding that the suggestion of Rama is for the advantage of the City.

The FREEMAN tried to contact Atty. Jose Daluz III, chairman of the City Bids and Awards Committee, to enlighten the matter however texts and calls were left unanswered.

On the other hand, Rama said if this would be realized soon, the city can immediately give the Province of Cebu their shares.

“Makahatag dayon ta sa Capitol. Motubag ta ug di ta maghinakog,” he said.

Governor Hilario Davide earlier asked Rama for a 50 percent share in the proceeds of the sale of Lot 917 containing of 2,357 square-meter lot in Barangay Lahug to help the Yolanda stricken-areas in Northern Cebu.

The WCCHC has long been interested in leasing the subject lot.

The city awarded to Hotel Asia in December last year after it posted the winning bid of P35,000 per square meter, which is P500 higher than the recommended floor price of the Committee on Awards.

The WCCHC earlier presented a long-term lease proposal for the city-owned property with only P25,000 a month or P11.30 square per meter for 20 years.

The hotel’s chief engineer, Vincent Lazaro, has requested the City Council photocopies of the documents on the bidding of lot 917 covered by Transfer Certificates of Title No. 30916.

“It is submitted that as a party in interest who stands to be adversely affected of any development to be conducted in lot No. 917, Waterfront has the right to challenge the validity of the bidding by bid protests. It should thus be allowed timely inspection and copying of pertinent bid documents, the subject of these documents being also matters of public record,” he said.

Waterfront claimed that the notice of bidding was advertised two days before the intended public auction sale.

The company earlier asked the city for the contested lot be held in abeyance on the ground that the bidding conducted by City Hall allegedly failed to comply with the requirements under Section 79 of the State Audit Code of the Philippines which requires that the notice of bidding should be advertised by printed notice for not less than three consecutive days. –/GMR (FREEMAN)