CEBU, Philippines – The management of SM Prime Holdings Inc. has offered the Cebu City government an advance tax payment of P50 million on condition that the money would be spent for the development of areas surrounding its mall.

During its regular session yesterday, the City Council approved a resolution authorizing Mayor Tomas Osmeña to enter into a memorandum of agreement with Hans T. Sy, president of the SM Prime Holdings Inc., regarding the offer.

The resolution is sponsored by Councilor Joey Daluz III.

The agreement, once realized, would be the second time that SM Prime Holdings Inc., the owner of SM City mall at North Reclamation Area, paid its taxes to the city in advance for the same purpose.

Osmeña said the roads surrounding SM City have been concreted, including the drainage system, after SM paid an advance tax of P50 million several years ago.

The mayor even encouraged other businessmen to pay taxes in advance as the city is willing to comply with their requests on what to be done within their areas.

Daluz said the SM management has requested that its advance tax payment be used to finance infrastructure projects within the mall’s surroundings.

Some of these projects are the rehabilitation of roads surrounding the mall, the improvement of the Mahiga Creek, installation of traffic signs, and the construction of a center island in the rehabilitated areas.

Although the demolition of the squatter houses along the Mahiga Creek was suspended for three days, it would push through next week as Osmeña wanted to clear the area.

The SM City management has agreed that part of its advance tax payment will be used for the relocation of informal settlers in the area who are affected by the rehabilitation project. — Rene U. Borromeo/LPM  (THE FREEMAN)