THE contract entered into by former Mayor Benjamin Lim with MetroState Realty Corporation is not binding as it was not ratified by the Sangguniang Panlungsod (SP).

This was the retort of Mayor Alipio Fernandez Jr. to reports that the city’s move to stop the construction was contrary to law.

Nonetheless, Fernandez said the fate of the P84-million project at the former Magsaysay Park lies in the hands of the current SP.

The mayor said the possibility of the construction being resumed will depend on how the Sanggunian will appreciate and approach the issue.

The order to stop the construction was due to the contractor’s failure to secure a building permit as recommended by City Engineer Virginia Rosario and City Legal Officer George Mejia.

The city engineer denied the issuance of the building permit after MetroState failed to present a resolution from the Sangguniang Panlungsod ratifying the agreement signed on January 26, 2007by Lim and Mary Karen Monzon, president of MetroState.

“That agreement, unless ratified by the Sanggunian, remains a proposal”, Fernandez said. According to him, MetroState has not bothered to send any company official to discuss the stoppage of their project.

The agreement between Lim and MetroState is supposed to be valid for 25 years wherein the project proponent will pay an annual rental of P1 million to the city government with an escalation every two years based on a seven percent rate, or prevailing inflation rate, whichever is higher.

Lim apparently signed the agreement with Monzon even in the absence of the resolution from the Sanggunian authorizing him to enter into contract with Metro State.

Fernandez also noted that the city council, per its Resolution No. 5406-2006 approved on May 8, 2006, had declared the land where the project is being built, approximately 3,925 square meters, as a tourism park not a commercial building.

The mayor said that that the design of the building was merely made to appear like a tourist attraction.

The mayor confirmed a previous statement made by City Legal Officer Mejia that MetroState has not filed any complaint against the city government.

Share your Comments or Reactions

comments

Powered by Facebook Comments