Mayor Rama reminds FLI to pay P845.2M obligation to Cebu City

May 28, 2012 12:38 am 

CEBU CITY, May 27 – Cebu City Mayor Michael Rama has reminded Filinvest Land Inc. (FLI) to pay its P845.2-million obligation to the Cebu City Government.

FLI withheld its 2012 payments for the lots it bought at the South Road Properties (SRP) because of encumbrances in the titles.

The Cebu City Legal Office has filed a motion for cancellation of memoranda of encumbrances and notice of lis pendens at the Regional Trial Court (RTC) Branch 9 early last month.

It prayed that the encumbrances in Transfer Certificate of Title Numbers PT-15971 and PT-15972, issued by Registry of Deeds of Cebu City, be cancelled.

Rama said the city does not want to compromise its relations with FLI as the property development project at the SRP is a joint venture with the firm.

FLI inked a joint venture agreement with the City Government in 2009 to develop 50.6 hectares of the SRP.

Of the total area, the property developer bought 10.6 hectares, located on the waterfront, for P1.79 billion, payable in seven years with an annual interest of five percent.

The lots covered by the Cebu City-FLI joint venture, however, were included in a P133-million claim of the heirs of Fr. Vicente Rallos.

The Rallos heirs are demanding payment over the use of a road lot in Barangay Sambag ll, Cebu City.

Rama earlier said FLI should fulfill its obligations to the city as the property developer’s payment will be used to finance services for residents.

Based on the computation of the City Treasurer’s Office (CTO), FLI was supposed to pay the City P845.2 million last March 11.

The amount includes the fourth amortization to the lot purchased by FLI at P245.2 million, while the rest covers City Hall’s share in the pre-sale of condominium units sold by FLI.

Last month, the CTO sent a demand letter to FLI for the payment of P858.65 million, which was due last April 30.

Cebu City Treasurer Ofelia Oliva earlier said an interest of P187,004.06 per day was added to the fourth amortization while P82,191.78 was added to the city’s share of the pre-sale of FLI’s condominium units at the SRP.

CTO records show that FLI has paid P945.5 million to the Cebu City Government for the amortization of the SRP lots. (PNA)

LDV/EB/re

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