DOCUMENTS obtained by The PUNCH show that market value of the MC Adore real properties is much higher than what the Lim administration established as minimum bid price if the price of a lot not too far from the MC Adore Hotel is owned and sold by Mayor Benjamin Lim and his wife Celia were used as the basis.
MC Adore, with a land area of 5,113 square meters and a seven story-building consisting of a total floor area of 11,000 square meters, was sold for only P119 million, with the lot valued at approximately P18,500 per square meter only.
Meanwhile, the deed of sale between the Development Bank of the Philippines as vendor, and the City of Dagupan, represented by Mayor Lim, as vendee in 2002 already showed that the total value of the land in 2002 was already P 122,712,000 or P24,000 per sq. meter
In contrast, the Lims sold their 715-square meter property located on A.B. Fernandez Avenue, opposite CSI Market Square, to the Land Bank of the Philippines (LBP) at P35,000 per square meter.
A PUNCH source in the real estate industry estimated that based on the 2005 market price as evidenced by the Lims’ sale of their own property, the minimum bid price for the MC Adore properties should have been no less than P202 million.
The property, marked Lot No. 7 of the Cadastral Survey of Dagupan and covered by TCT No. 65653, used to be a store under the business name of D’Executives, which the Lims later owned and eventually sold.
The appraisal committee created by Mayor Lim initially pegged the P15,000 price based solely on a zonal value established before 2007.
The committee was chaired by City Administrator Vlad Mata whose members included key city officials and representatives of the Chamber of Real Estate and Builders Association (CREBA), United Architects Association of the Philippines chapter and the Dagupan Filipino Chamber of Commerce.
The regional Commission on Audit amended the price and established that the minimum bid price should be P106.2 million.
Real estate industry players say the price of land in Dagupan’s downtown area has already doubled or even tripled since seven years ago, which means the MC Adore property could easily fetch at least P200 million.
A source also said the city government was given a special price of P50 million in 2002 by the Assets Privatization Trust (APT) on its representation that the hotel property will be developed to be used as the site of the new city hall.
The city government under the Lim administration never came close to designing the acquired property as the new city hall.