Committee chooses Megaworld property as new city hall site
The ad hoc committee tasked to study the construction of the new Iloilo City Hall building has recommended to push through with the deal offered by Megaworld Corporation to the city government. The committee's recommendation, however, is still subject to the approval of the Sangguniang Panlungsod.
City Mayor Jerry Treñas said the ad hoc committee chaired by Vice Mayor Jed Patrick Mabilog recommended that the city government sell its property which used to house the old city hall building in Plaza Libertad. In the proposal, the city will use the proceeds of the sale to buy portion of the Megaworld property in Mandurriao.
The chief executive said "there would be no land swapping" on the property offered by the corporation and the property of the city government at Plaza Libertad.
The city government property in Plaza Libertad is estimated to cost some P23.7 million based on the 2004 assessed value. The cost of the property is even much higher than the 2008 computation. The area offered by the Megaworld to the city government is estimated to cost only P13.5 million.
The selling price of the property in the old airport site should be based on the computation of the Department of Finance (DoF), said Treñas.
DoF is one of the members of the Privatization Council that approved the selling price of the government property. The corporation bought the property for P1.2 billion. The other members of the Privatization Council are the Department of Justice, Department of Budget and Management and National Economic Development Authority (Neda).
The ad hoc committee has also recommended to increase the area intended for the construction of the new city hall building. Instead of the 2,000 square meters land area the committee recommended to acquire 5,000 square meters so there would be enough space for parking areas and developments.
There would be future developments in the old airport site as soon as Megaworld started to pour its investment. Initially, the corporation will pour some P1.5 billion investment. The price of the property is expected to rise as soon as development takes place in the area.
The construction of the proposed edifice will undergo a bidding process. Megaworld will also bid for the construction of the building. There is no such thing as "free building" from the corporation. The construction alone of the project costs more than P300 million. No corporation will give it for free, said Treñas.