SBMA Chairman and Administrator Jonathan Tan follows through his house-cleaning initiative with the repossession of 3 more properties of erring locators, sending the terse message to others.
SUBIC BAY FREEPORT — True to its mandate of utilizing land areas efficiently and making sure that locators are following good business practices, the Subic Bay Metropolitan Authority (SBMA) has taken over three more properties inside this premier Freeport.
According to SBMA Chairman and Administrator Jonathan D. Tan, the agency took over two buildings from Parabion, Inc. at the Cubi Triboa District within the Subic Bay Freeport Zone. The seized or repossessed area has 1,176 square meters.
“The company has committed contractual defaults that prompted the SBMA to take over their properties. One is failure to comply with development commitments, and two, for non-payment of lease rentals and Common Use of Service Area (CUSA) fees,” Chairman Tan said.
The company has amassed a debt in CUSA close to P10 million as of July 28 of this year.
“We already sent them a final notice of default with demand to pay on November 22, 2022, then we sent them a notice of pre-termination and repossession on July 28 that was served on August 10. This is pursuant to SBMA Board Resolution No. 23-07-0173 that was approved last July 4,” Tan added.
Chairman Tan also pointed out that the agency took over Bldg. 8321 along Zambales Highway, Cubi Triboa District, and Bldg. 8359 along Bataan Road, also in the Cubi Triboa District.
The third property that was taken over by the agency was owned by Ramphos Corporation, a company that manufactures and sells amphibious ultralight aircraft.
The property is a 966-square-meter portion of Bldg. 8045-C at the Subic Bay International Airport (SBIA).
The company has an expired lease agreement with the SBMA since September 11, 2020, prompting the eventual takeover by the SBMA last September 5, 2023.
The chairman confirmed that the company has contractual defaults such as non-payment of lease rentals (building spaces), CUSA fees, ACC and SOA fees amounting nearly P10 million as of July 28 of this year.
The SBMA chief urged companies inside the Subic Bay Freeport to pay their dues and obligations diligently to ensure their seamless business operations.
Earlier this month, the SBMA successfully effected the repossession of a 1,500 square meter property of Silver Arrow Import and Export Services, Inc. located at Lot 1, Boton Area, Argonaut Highway, also because of contractual defaults.
According to Tan, the company failed to comply with its Investment and Development Commitment as provided in Section 7, Article II of the Lease Agreement between the company and the SBMA. Part of the said default is the failure of the company to develop the area with a funding allocation of at least US$1,000,000.
He added that the development commitment on the Leased Property should have a minimum cost of US$500,000 which includes the construction of a warehouse within two years from the issuance of its building permit.
“Aside from the Investment and Development Commitment, the company’s contractual default also includes non-compliance with the Omnibus Policy on Performance Bond, and failure to submit documents for the issuance of a building permit,” he said.
The said building permit is for the construction of a warehouse as stated under the company’s Development Commitment. Tan added that this is so despite the unreasonable length of time that had already lapsed since the execution of the lease agreement last July 28, 2015.
These developments point to the fact that Chairman and Administrator Jonathan D. Tan is serious in running the Subic Freeport professionally, in order to maximize the revenues that the place may contribute to the national economy.
After all, such was his commitment to President Ferdinand Marcos Jr. when he accepted his appointment in SBMA.
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