CEBU City Hall will earn P800 million this week as Filinvest Land Inc. is expected to hand in its first quarter amortization payment for the South Road Properties (SRP) lot it purchased from the city.
The amount marks the city’s share of the joint venture (JV) agreement it entered into with the real estate developer.
City Treasurer Ofelia Oliva said Filinvest payment marks the start of the city’s campaign to go after its debtors.
“The city has so much collectibles from different people. Some are not paying their taxes. I will be releasing their names to the media soon,” she said.
Oliva said the availability of funds would allow the city government to implement more development projects.
Filinvest withheld its 2012 payments for the SRP because of encumbrances on the titles of the lots it bought from the City.
The titles have reportedly been annotated “lis pendens” which means there is pending litigation involving the properties due to the city’s court battle with the Rallos heirs.
The CTO computation shows that Filinvest is due to pay P845.2 million in 2012.
Of the amount, P245.2 million is FLI’s fourth amortization for the 50 hectare SRP lot it purchased.
The P600 million represents the city’s share of the profits from the sale of FLI’s condominium units at the SRP.
Oliva said that if the terms of the contract with FLI were to be followed, the city government has the option to charge them penalties for delayed payments, which was due on March 11 yet. But in her demand letter, Oliva said she only demanded payment for their basic due.
Oliva said they’re also preparing another demand letter to the Rallos heirs to return the P55 million garnished from the city’s bank deposits.
Oliva said the Ralloses have to pay back with interest as the Cebu city government managed to prove that the supposed expropriated lot was donated to the city.
But Oliva said, she would send the demand letter only after the court makes a formal entry of judgment favoring the city’s claims that the road lot in barangay Sambag II was donated to the city government by the late Fr. Vicente Rallos.
“If they refuse to pay back, we will get some of their properties,” said Oliva.