Republic of the Philippines Province of Negros Occidental CITY OF TALISAY

Office of the City Administrator

A DRAFT RESOLUTION PROPOSING THE EXEMPTION OF THE TALISAY CITY PLAZA COMPLEX HERITAGE RESTORATION AND REDEVELOPMENT PROJECT FROM PAYMENT OF THE REAL PROPERTY TAX WHEREAS, the City of Talisay is the owner of the City Plaza Complex which includes three main structures including the old City Hall, the main public market, and the commercial building for commercial-mixed use; WHEREAS, the City of Talisay plans to restore and redevelop the foregoing properties in order to encourage entrepreneurship and increase household incomes through livelihood opportunities and provide a venue for micro-and small businesses; WHEREAS, this Office received a copy of the Regional Development Council Resolution No. 02, Series of 2012, approving and endorsing the Talisay City Plaza Complex Heritage Restoration and Redevelopment Project through the Private Partnership Center of the Philippines of Talisay Citys three main structures including the old City Hall, the main public market, and the commercial building for commercial-mixed use; WHEREAS, the project shall be pursued though a public-private partnership (PPP) under a BuildTransfer-Operate (BTO) scheme; WHEREAS, section 2 (f) of Republic Act No. 7718 otherwise known as an ACT AMENDING CERTAIN SECTIONS OF REPUBLIC ACT NO. 6957, ENTITLED "AN ACT AUTHORIZING THE FINANCING, CONSTRUCTION, OPERATION AND MAINTENANCE OF INFRASTRUCTURE PROJECTS BY THE PRIVATE SECTOR, AND FOR OTHER PURPOSES" defines Build-Transfer-Operate (BTO) scheme as: A contractual arrangement whereby the public sector contracts out the building of an infrastructure facility to a private entity such that the contractor builds the facility on a turn-key basis, assuming cost overrun, delay and specified performance risks. "Once the facility is commissioned satisfactorily, title is transferred to the implementing agency. The private entity however, operates the facility on behalf of the implementing agency under an agreement. WHEREAS, under the said law, the title of the old City Hall, the main public market, and the commercial building for commercial-mixed use will be transferred in favor of the City of Talisay upon the completion of the project, and as such, constitutes real properties owned by the City;

WHEREAS, Section 40 (a) of Presidential Decree No. 464, otherwise known as the Real Property Tax Code, as amended by PRESIDENTIAL DECREE NO. 1812 BY GRANTING SPECIAL AUTHORITY TO THE PRESIDENT TO PROVIDE FLEXIBILITY IN THE REAL PROPERTY TAX SYSTEM TO MEET ECONOMIC EXIGENCIES AND/OR PROMOTE THE GENERAL WELFARE provides Exemptions from Real Property Tax. The exemption shall be as follows: (a) Real property owned by the Republic of the Philippines or any of its political subdivisions and any government-owned corporation so exempt by its charter: Provided; however, That this exemption shall not apply to real property of the above named entities the beneficial use of which has been granted, for consideration or otherwise, to a taxable person. WHEREAS, as real properties of the City of Talisay, the old City Hall, the main public market, and the commercial building for commercial-mixed use, cannot be the subject of Real Property Tax as the same is exempt therefrom as provided in Section 40 (a) of Presidential Decree No. 464; NOW, THEREFORE, BE IT RESOLVED as it HEREBY RESOLVES, the approval of the exemption of the City Hall, the main public market, and the commercial building for commercial-mixed use Restored and Redeveloped though a public-private partnership (PPP) under a Build-Transfer-Operate (BTO) scheme, from the imposition of Real Property Tax. RESOLVED FINALLY, upon adoption of this Ordinance a certified copy of this Ordinance be furnished Honorable Eric M. Saratan, M.D., City Mayor of the City of Talisay, Negros Occidental for information, guidance and record purposes; -00O00-