He will appeal to your emotions by vilifying “Team Babag”, “Team Suyop”, etc by claiming that 5,000 jobs are at risk.

Want the real story? Want to know what is really at risk???Read on…

 

Contrary to what the Commissioner Tom wants the people to believe, the council DID NOT BLOCK the 18B Kawit Project. What the council BLOCKED was a highly anomalous and disadvantageous joint venture agreement that the City would have been tied with for the next 50 years. Among the questionable provisions are the following:

 

1. The City would invest P10B worth of property and the joint venture partner would put in P18B. How come the City would share only 10% of the gross RENTALS while the JV partner gets 90%?

Is this a fair profit-sharing scheme considering that we are putting in 10B in property? remember that in another joint venture project for the 3rd bridge, the city is getting 1% of gross without investing a single centavo or property.

 

2. The City will only get its 10% share on the 9th year from time of the execution of the contract. THERE IS NO MINIMUM GUARANTEE AMOUNT. So if the joint venture partner has low rental income (as with what is happening now in Robinsons Galleria and SM Seaside) then the city does not get any income as well.

 

Lets add insult to injury shall we? This is an INTEGRATRED RESORT DEVELOPMENT with a hotel(s), convention centre, casino, etc. Where is Cebu City’s share in that?

 

As an alternative, the PDP LABAN councilors(“Team Babag”,”Team Suyop”) believe that a straight rental fixed amount with an escalation clause is a better contract compared to a risky profit sharing scheme. In a straight lease, the city is guaranteed a fixed monthly income that is not affected by market forces and rental payments begins on the very first month. And for a 9 hectare property valued at a CONSERVATIVE P200/sqm, that’s P18M per month!

 

The city’s mandate is to deliver basic services to the people and not act as a private enterprise. What we need is a risk-free and stable contract that can support our government.

 

WE ARE NOT IN THE BUSINESS OF REAL ESTATE. We were elected to protect the interest of the City from anomalous and disadvantageous contracts. This is one of them. I can only surmise why the Commissioner Tom wants us to approve this contract. Is there a huge commission and kickback to be made, Mr Mayor? Only an idiot will believe you have nothing to gain from all this.

 

You want 5,000 jobs? Stop being such an arrogant dictator, improve our infrastructure, and for once, have a clear vision for Cebu’s future. Don’t focus on big-ticket projects that will give you one-time-big-time kickbacks kai “usa rai istoryahan.”

 

In this election it is important that we elect barangay captains that are allied with PDP Laban, President Duterte’s party, so we can further the Presidents anti-corruption advocacy and BLOCK anomalous and disadvantageous contracts that the Kickback Mayor wants to railroad.