P100 M minimum bid set for MC Adore

By September 17, 2012Headlines, News


THE appraisal committee created by Dagupan Mayor Benjamin S. Lim for the MC Adore land building has appraised the property to be worth only P100 million.

Based on the appraisal report submitted to Lim, a copy of which was obtained by the PUNCH last Tuesday, the committee estimates the land on which MC Adore stands, consisting of four lots, is valued at P76.6 million based on city’s zonal value, while the market value of the building is set at P20.8 million.

The signed report of the appraisal was evidently completed even as City Administrator Vladimir Mata was recently quoted saying that an appraisal by the committee would not be final and will still be subject to the evaluation of the Commission on Audit.

It is not known whether the COA that Mata referred to is the city auditor or the regional COA office.

Mata said if the property is sold at P100 million, the city of Dagupan would gain P50 million since it bought the property from the Assets Privatization Trust (APT) in 2004 at only P50, million.

Vice Mayor Belen Fernandez, however, earlier said she any bid that would be less than P200 million for the hotel property should be suspect citing the market value of the land considering its prime location.

“To sell it below P200 million will be grossly disadvantageous to the city government and unfair to Dagupan taxpayers, “ the vice mayor said. “The city deserves more,” she added.

Fernandez pointed out that no property seller in the world would quote a zonal value as basis for a starting bid or to sell a property.

A real estate agent, who requested for anonymity, consulted by the PUNCH for an independent evaluation, questioned the formula adopted by the committee to arrive at its appraisal.

The agent noted that the committee used different measures instead of a common factor noting that the zonal valuation not the estimated market value for the land was used, while the market value of the building as provided for by the Bureau of Internal Revenue and the City Assessor’s Office was used.

“Why not cite the market value of the land as well?” the agent who requested anonymity told The PUNCH.

Mata is the chairman of the appraisal committee with Alan Dale Zarate as vice chairman. The members are Councilor Karlos Reyna, City Treasurer Romelita Alcantara, Assistant City Legal Officer Roy Laforteza, Nestor de Vera and Marcelo Prado, both of the City Engineer’s Office and, Eduardo Magno of the General Service Office, Emmanuel Palaganas of the City Planning Office.

Representatives from the Chamber of Real Estate and Builders’ Association, Inc., the United Architects of the Philippines- Pangasinan chapter, and the Philippine Chamber of Commerce and Industry-Metro Dagupan Chapter are also appointed members of the committee.

The mayor’s office, however, refused to reveal the names of the members from the private sector.

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