Ad hoc committee wants 5-year free lease for P1.4-B Japanese retirement haven

CEBU CITY, Feb. 20 (PNA) — A Cebu City Council ad hoc committee has proposed a five-year free lease for Japanese group I-Land Ways Philippines for its proposed P1.4-billion retirement facility on a 1.2-hectare lot at the South Road Properties (SRP).

Cebu City Councilor Gerardo Carillo, chairperson of the ad hoc committee created to study the terms of reference, said I-Land Ways will start to pay a rent of P100 per square meter on the sixth year.

Carillo said the proposal was with the concurrence of the City Legal Office and the awards committee, which pegged the floor price at US50 cents or about P22.30.

The ad hoc committee is composed of Councilors Carillo, Nestor Archival, Margarita Osmeña, Mary Ann de los Santos, Sisinio Andales, Hanz Abella and Noel Wenceslao.

Carillo said the company will enjoy free rent for five years while the facility is under construction, starting from the signing of the contract.

Carillo said the city will only deal with the consortium of I-Land Ways and Primary Structures of the Philippines. The contract will be dissolved if the two firms cut ties, he said.

He said the rate of P100 per square meter may be raised by two percent every five years.

The proposed lease contract is good for 25 years, renewable for another 25 years.

Carillo also said Cebu City constituents will be given priority in employment during construction and when the retirement facility is already operational.

Under the recommended rate, the city will earn P1.2 million as rent every month compared to just P280,000 based on the recommended floor price.

At P100 per square meters, the city will earn P288 million in 25 years compared to the P85 million in 25 years, based on the original recommendation, he said. (PNA)