The local government of Marikina City has been granted authority to conduct negotiated sale of real estate at the upscale Loyola Grand Villas, four years after offering the lots at bargain prices in 2017.
Mayor Marcelino R. Teodoro sought permission of the Commission on Audit to allow the sale at negotiated price of seven LGV lots at a cost ranging from P21,403 to P21,800 per square meter – the prices offered to two buyers four years ago.
In a decision handed down by the COA-Commission Proper recently, the audit agency granted the request after Teodoro admitted having difficulty in selling the lots after a failed public bidding on March 3, 2017.
Before the public bidding, the COA Technical Services Unit (COA-TSU) filed an Appraisal and Valuation Review Report recommending the value of Lots 2,3 and 5 at P43,000 per square meter and Lots 1-A, !-B, 2-A and 2-B at P45,000.
The City Committee on Awards (CCA) recommended a re-bidding, after the offers it received fell below the minimum set by the COA-TSU. However, the re-bidding conducted on March 16, 2017 was also declared a failure.
On March 28 the same year, the CCA issued a resolution authorizing the disposal of the properties through negotiated sale. The resolution also adopted the negotiated offers of “Ms. Charito B. Baingan at P21,800 per sq.m. for Lots 2-, 3 and 5; and Mr. Renato V. Santos at P21,403 for Lots 1-A, 1-B, 2-A and 2-B.
Teodoro endorsed the resolution for approval by COA as required under Republic Act 7160 or the Local Government Code of 1991.
On January 25, 2012, Teodoro filed a supplemental memorandum urging COA to approve the negotiated sale of three lots “subject to the adjustment of the price offered by the current offerors int he amount not lower than the COA Appraisal Value.”
The city executive also sought the conduct of rebidding of the four other lots as a result of the death of the original bidder. Again, the COA-TSU appraisal value will be used as basis for the pricing.
In granting Teodoro the authority to undertake the negotiated sale, the COA-CP noted that the city government complied with the submission of documents indicating the conduct of biddings and the subsequent declaration of failure in the said biddings.
“This Commission recognizes that the failure of the two biddings and the impracticability of a further re-bidding had pulled the trigger for the City of Marikina to conduct a negotiation,” the COA-CP noted.
“With regard to the negotiated price of the subject properties, the same is not underpriced because the current offer for the lots under TCT Nos. 295145, 295146 and 295147 will be adjusted to an amount not lower than the COA Appraisal Value,” added the panel composed of Chairman Michael Aguinaldo and Commissioner Roland Pondoc.
“Thus, this Commission approves the proposed negotiated sale of the properties,” the decision stated.
On the four remaining lots, the COA-CP said it finds no prohibition for the re-bidding using the COA-TSU Appraisal Value.