Council holds talks on lot swap deal

Although Gov. Gwen Garcia said reviving a lot swap offer was “irrelevant”, the Cebu City Council will hold a  consultation about it today.

The council will meet at the barangay Luz sports complex for an off-site session and also consult  occupants of province-owned lots coverd by Provincial Ordinance  93-1.

Cebu City Mayor Michael Rama said he  too won’t pursue a land swap with the province anymore.

Rama said he was against the proposal from the start because it would prove disadvantageous to the city.

The 2007 proposed swap involves exchanging the  city owned Block 27 lot at the North Reclamation Area which was valued for P500 million with 93-1 lots whose occupants had accumulated P185 million in unpaid amortization.

Last Aug. 1,  Councilors Rodrigo Abellanosa, Nida Cabrera and Alvin Dizon presented a resolution  seeking to  authorize the mayor to pursue negotiations for the  lot swap.

Councilor Edgar Labella, Rama’s ally, said the swap was proper and aboveboard, and that it would  address the security of tenure  of about 5, 000 Cebu City families who live on province-owned lots.

“I believe that there is no disparity in the valuation (of properties to be exchanged) because the exchange will be based on social cost,” Labella said.

The lot swap was first proposed by then mayor Tomas Osmena in 2007 but was aborted when then vice m ayor Rama criticized it as a deal that gives the Capitol unfair advantage with his now famous quote “dawat ug limpyo”.

“The mayor is entitled to his own opinion.  But the ad hoc committee  recommended the lot swap,” Labella said referring to the committee he belonged to in the past Osmena administration.

Labella said reviving the  lot swap negotiations would  give Rama a chance to revist  the matter with the provincial government  to resolve security of tenure issue of 93-1 occupants.

Governor Garcia, however, said this was no longer necessary since she signed a memorandum of agreement with homeowners associations  for the occupants under Ordinance N0.  93-1 to purchase their lots from the Capitol through long-term amortization schemes.

Seven of these lots are in Mabolo, four are in Nivel Hills in Busay, and the remaining are in Capitol Site and in Kasambagan.

PB Member Alex Binghay said the PB again agreed to include the phrase “subject to the strict compliance of all existing rules and regulations of the Commission on Audit and of other agencies with relevant laws governing thereto” in the title.

Similar to the previous MOA, 13 additional homeowners associations are given six months to pay the purchase price.

The MOA pegged the cost of lots at P2,726.66 to P11,500 per square meter.

The price was  computed based on the total zonal value, opinion values and schedule of fair market value divided by two.

The MOA also said the selling price of the lots is payable under  terms and conditions  agreed by the parties with some lending agencies. With Correspondent Tweeny M. Malinao

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