Hotel questions CH sale of lot to rival

CEBU, Philippines - The Waterfront Cebu City Hotel and Casino is contesting the Cebu City government’s selling of a property along Salinas Drive in Barangay Lahug to its rival Hotel Asia Incorporated.

Waterfront Hotel expressed interest to buy the 2,357-square meter property located across the I.T. Park. It questioned the city government’s alleged failure to inform the hotel management on the bidding conducted in December last year and asked to reconsider the award to Hotel Asia Incorporated as winning bidder.

Lawyer Joey Daluz III, chairman of the committee on awards, said he received the complaint of Waterfront two days ago, asking why it was not informed of the bidding.  But Daluz said the bidding schedule was “duly published.”

“There was no letter of intent coming from Waterfront that they will purchase the lot adjacent to their property. It’s already too late naa na tay buyer so wala na tay mahimo,” he said.

The Waterfront claimed that the city government has promised that it will be properly informed of the bidding.

However, the promise was allegedly done “long time” ago during the administration of then Mayor Tomas Osmeña.

“I don’t want to blame anyone. However, (Waterfront) already lost the property over Hotel Asia Inc,” Daluz added.

Hotel Asia Inc, as the winning bidder, acquired the Lot 971 containing of 2,357 square meters along Salinas Drive, across the I.T park for P35,500 per square meter, which is P500 higher than the P35,000 per square meter floor price set by the committee on awards.

The property will only be utilized for hotel, condominium, office space or combination of both, whose development would start two years from transfer of the land title.

On January 10, 2014, the winning bidder has paid the partial amount of P46,086, 700, which is 50 percent of the total cost of the property.

To transfer the land title, Mayor Michael Rama has to be authorized by the City Council to enter into and sign the Deed of Sale and Deed of Conditional Sale with Hotel Asia Inc. in order “to consummate the sale, facilitate the transfer of the certificate of title and other processes” in relation to the bid-out property.

Councilor Nida Cabrera objected to giving authority to Rama, saying that the matter should be properly studied considering the alleged complaint from the provincial government and Waterfront against the bidding of the Lot 917.

“The bases are not enough. Davide (Governor Hilario Davide III) did not question the sale of the lot and Waterfront is too late of a hero because the bidding was already done and the winning bidder was in compliance with the law,” Councilor Gerardo Carillo said.

“If this will not immediately pass, the payment will be returned or we will be sued for this. If we are going to delay this, put reasonable grounds to anchor your basis,” he added.

The issue became a subject of heated discussion in the council yesterday, prompting Vice Mayor Edgardo Labella to call for a recess twice. The council later agreed to refer the matter to the committee on awards, city legal office and council’s committee on laws. –(FREEMAN)