The reclaimed lands of Cebu City and the Public Estates Authority in 1978
President Ferdinand E. Marcos on April 11, 1978 issued Presidential Decree No. 1346 entitled "Conveying the land reclaimed in the foreshore and offshore of Cebu City, beginning from Pier 3 and extending to Subangdaku, as property of the Public Estates Authority." The presidential decree explains that certain foreshore and offshore (submerged) lands bordering Cebu City, beginning from Pier 3 and extending to Subangdaku (referred as the "Cebu Port Development and Reclamation Project) were reclaimed, purportedly by virtue of City Ordinance No. 373, Series of 1962, of the City of Cebu, as amended by Ordinance No. 474.
The ordinance was however questioned in a civil case docketed as R-10468 entitled "Republic of the Philippines versus Cebu City, et. al., the Court of First Instance of Cebu promulgated a decision finding null and void Ordinance Nos. 373 and 474 and any and all contracts executed pursuant thereto, or as a consequence thereby, and declaring the reclaimed land as having remained to be lands of the public domain.
The Court of First Instance found out that public interests require the immediate utilization and further development of the reclaimed lands and ordered the immediate execution of its decision pending resolution of whatever appeal the party litigants may interpose.
The decree emphasized that the Public Estates Authority was created under Presidential Decree No. 1084 to provide for a coordinated, economical and efficient reclamation of lands, and the administration and operation of lands belonging to, managed or operated by the government, with the object of maximizing their utilization and hastening their development consistent with the public interests.
The decree mandates that the absolute ownership and administration of lands reclaimed in the foreshore and offshore areas of Cebu City under the Cebu Port Development and Reclamation Project, subject to the Decision of the Court of First Instance of Cebu in Civil Case No. R-10468, together with all the public improvements therein found such as buildings, roads, parks, community area, wharves, piers, embankments, and docking and harbor facilities, were hereby transferred, conveyed and assigned to the Public Estates Authority.
President Marcos also ordered the Land Registration Commission and the Register of Deeds of Cebu City to cancel the Original Certificate of Title No. 140 issued in the name of Cebu City and all Torrens Title emanating therefrom.
The decree also provided that the lot buyers of the reclaimed lands who had fully paid, as of December 31, 1976, the purchase price originally with the Cebu Development Corporation shall be required to pay an additional amount equivalent to 33-1/3% of the purchase price as premium. For lot buyers who have fully paid the purchase price as of December 31, 1976, regardless of the amount outstanding were required to pay an additional amount of equivalent to 50% of the purchase price as premium.
Marcos also ordered that any and all income that the Public Estates Authority may derive from the sale, lease, or use of the reclaimed areas were to be utilized for the payment of the obligations it may have incurred in the claims of those who had extended loans or furnished supplies, materials and technical services in the reclamation and development of the reclaimed areas. The income shall also be used for the costs of the administration of the reclaimed area.
Presidential Decree 1346 was prepared by Juan C. Tuvera, the then presidential assistant of President Ferdinand Marcos.
The mayor of Cebu City at that time was Engr. Eulogio Enriquez Borres who was replaced by Dr. Florentino Solon on October 18, 1978.
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