Friendly Observer
By Arthur Keefe
Sharing the benefits
of development
As work gets underway on the new tennis courts at Center Mall, it
is timely to reflect on the activities of San Julio Realty and its relationship
with the city.
Some
claim that the whole Center Mall is no more than a successful business venture
by the Ledesma Family, who have transformed sugar land into high value real
estate. Further, by managing to pass some of the costs of road and other
infrastructure costs to the taxpayer, they have produced private profit with
public subsidy.
It
may well be that the Ledesmas have benefitted from the increased land values,
but in my view, the public benefit has also been considerable. There are few
cities in Negros with such a large and well-managed public space. The sports
facilities (basketball, football, and now tennis) are excellent. Everyday hundreds
of people in the early morning and afternoon use it for walking and exercise.
The
sites of the high school and City Hall have been donated to the city at nil
cost and the commercial properties provide small business opportunities.
In
Europe, it is commonplace for local councils to only agree developments
(housing, shopping malls, etc.) if the developer agrees to include public works
in their scheme. This may be improved road access to the facility, but can
often include unrelated schemes such as a public library or a health center,
which when completed, is transferred to the council at no cost. It is a way of
sharing the benefits of planning between the developer and the public.
I
arrived in San Carlos after the Center Mall developments, and it was one of
those factors which attracted me to stay here. I realized that the scheme has
been controversial and that it can be seen as evidence of a rich family
creating more private wealth. However, in my view, the public benefits have
been considerable and it demonstrates a successful public-private
partnership. Vigilance is needed to
ensure the public benefit is not eroded. Of course, the sale of residential
lots has brought the Ledesmas big profits and rentals bring a steady income,
but the public benefit continues at minimal cost.
It
is a moving picture and it is possible over time that public space will be
eroded as the residential areas grow. I do not know what protection, if any, is
built into public access. The construction of the tennis courts is at public
cost and the land has transferred to the city presumably for a price. More
arrangements of this kind are needed to protect parts of the open space in
perpetuity.
Public-private
partnerships of this kind are common. Microsoft probably abused its
monopolistic position until Windows (as found by the European Court) to amass a
massive personal fortune for Bill Gates in the USA. However, in a long
tradition of American philanthropy, he is now donating much of his fortune to
fight AIDS and malaria across the world. Many years ago, the oil and steel
tycoons in the USA left much of their fortunes to charitable foundations.
(Rockerfeller, Getty, etc)
In
a country such as the Philippines, with extremes of wealth and poverty any
further growth in the fortunes of the rich minority will be a cause of
resentment for many.
In the long run, a
major restructuring of the economy is needed to address this, but for now,
ensuring public benefit alongside private gain is the best deal on the table.
The benefits are for all to see here in San Carlos.NRWP
No comments:
Post a Comment