The Cebu City Council's committee on housing has demanded that local offices immediately clarify major legal and zoning conflicts stalling the controversial Carbon Public Market redevelopment. A recent council inquiry revealed that unresolved contradictions in agreements have left both the multi-million project and the future of local residents completely up in the air.
Legal battles limit council inquiry
The recommendations followed a June 11, 2026, committee hearing tied to an ongoing legislative review under Resolution 17-3419-2026, which was initiated on April 21. While the council originally planned a comprehensive study on how the redevelopment affects vendor livelihoods, heritage preservation and resident relocation, active lawsuits quickly limited their scope.
Because two lawsuits challenging the validity of the Joint Venture Agreement (JVA) are currently pending before the Regional Trial Court — filed by resident Vivian Ando and others, and another by the Carbohanong Alyansa — public discussion is heavily restricted. To comply with the sub judice rule against influencing active court cases, committee chairman Councilor Mikel Rama limited the inquiry strictly to housing and relocation issues affecting the residents of Sitio Bato.
Conflicting contracts and stalled housing plans
A primary issue examined by the committee is a direct contradiction between the original JVA contract and its subsequent supplemental agreement. Section 5.1(B) of the original contract requires the City to clear and relocate illegal occupants from Sitio Bato entirely at public expense.
Conversely, the supplemental agreement mandates that both parties collaborate on a comprehensive plan that protects the interests of actual occupants, delaying any redevelopment of Sitio Bato until the final phase of the project. City Legal Office representative Ronald Anthony Librando explained that under standard rules of legal interpretation, newer provisions supersede older, inconsistent ones. This shifts the City's immediate responsibility away from forced relocation and toward the preparation of a comprehensive housing plan.
Despite these requirements, no concrete housing plan has actually been developed. Representing Cebu2World Development Inc. (a subsidiary of Megawide Construction Corp.), corporate affairs and marketing manager Jynx Chanjuenco confirmed the gap to the committee, stating, “as we speak there is no comprehensive plan just yet.”
Chanjuenco clarified that Megawide holds no legal authority to evict residents or demolish homes, as that responsibility remains entirely with the Cebu City Government. However, he noted that the developer is willing to construct whatever housing model the City decides on, including a medium-rise socialized housing project if preferred.
The delay stems largely from an administrative standstill. The seven-member Project Oversight Committee (POC) — consisting of four Megawide representatives and three city officials (the city administrator, city treasurer, and city legal officer) — has failed to meet at all this year, paralyzing formal coordination.
Land ownership confusion and community anxiety
This policy deadlock leaves the residents of Sitio Bato in a precarious position due to the complex legal status of the land they occupy. Vice Mayor Tomas Osmeña argued that Sitio Bato consists of reclaimed or accreted land formed from the sea, which under constitutional law cannot be part of a commercial joint venture without an official presidential proclamation. Librando confirmed that the area is not included on the cadastral map and has not been legally declared alienable and disposable — meaning it cannot currently be sold or privately owned — though a homeowners' application for a presidential proclamation is pending.
In contrast, Edmund Lao, legal counsel for the Becanai homeowners association, argued that City Ordinance 1866 previously designated Sitio Bato as a socialized housing site. He maintained that the community remains protected under Republic Act 7279, or the Urban Development and Housing Act, which legally prioritizes on-site development over relocation.
Adding to community anxieties, residents recently discovered that Sitio Bato has been classified as a Flood Overlay Zone, leading to fears that the designation would be used to justify mass demolitions. Becanai president and Barangay Councilor Vivian Ando appealed for residents to remain, citing decades of occupancy, a lack of relocation funds and local rumors that a casino would be built on their land.
City Planning representative Anne Cuizon clarified that the flood classification is simply a safety designation identifying vulnerability to flooding and does not cancel the area's status as a housing site. Chanjuenco also categorically denied the casino rumors, stating that Megawide has no involvement in gambling and noting that casinos are legally prohibited near schools and churches. Meanwhile, Barangay Ermita Captain Mark Rizaldy Miral urged the committee to remove Sitio Bato from the Carbon redevelopment agreement altogether to keep the project focused strictly on the public market.
Next steps for city officials
To resolve the gridlock, the committee on housing recommended several concrete actions to the City Council. The committee directed the City Legal Office to submit a formal written opinion resolving the conflicting JVA provisions, defining the differences between public and private markets and clarifying Sitio Bato's legal boundaries. Additionally, the City Planning and Development Office must submit a comprehensive report detailing the area's zoning, flood designations and socialized housing status.
To finally move the stalled housing plan forward, the committee has urged Mayor Nestor Archival to officially select the City's preferred housing model for the area. With a requested position paper from the Barangay Ermita council and a strong push for the Project Oversight Committee to immediately convene, the future of the Carbon Public Market redevelopment now rests on whether city leaders can successfully untangle these legal and administrative knots.
