Council authorizes mayor to negotiate Maharlika turnover

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The City Council approved a resolution authorizing Mayor Benjamin B. Magalong to negotiate and enter into an agreement with the State-owned Human Settlements Development Corporation (HSDC) for the immediate turnover of the Maharlika Livelihood Complex to the city government.

The resolution authored by Councilor Betty Lourdes F. Tabanda states the city government has recently signified its intention to reclaim and initiate the early turnover of the Maharlika Livelihood Complex to the city despite the fact that it’s supposed scheduled turnover is on the year 2025.

The resolution stipulated that on April 28, 1972, the city legislative body and M.G. Suntay entered into an agreement to undertake the construction, operation, and management of a multi-storey supermarket and complex shopping center which is now known as the Maharlika Livelihood Complex.

Initially, the lifespan of the agreement was for 25 years from the date of completion of the project as the counterpart of the city government for the put up of the facility was its prime lot located right at the heart of the city.

On May 1972, M.G. Suntay executed a deed of assignment over said project in favor of MAR-BAY and Co., Inc.

Moreover, on April 16, 1975, pursuant to Resolution No. 41, series of 1975, the lease period was increased to 50 years commencing on April 28, 1975 and will end on April 27, 2025.

On August 14, 1980, the resolution noted that a memorandum of agreement was entered and executed by and between MAR-BAY and Co. Inc., and HSDC whereby the first party agreed to negotiate the transfer and assignment of the leasehold rights, inclusive of all improvements introduced or constructed therein such as the MAR-BAY Baguio Plaza Hotel and MAR-BAY shopping center, in favor of HSDC.

Earlier, the city chief executive informed city legislators that the undersecretary in charge of the HSDC reportedly called him up to signify the corporation’s desire to already turnover the center to the city government by next year.

The approved resolution will be transmitted to the Office of the City Mayor, the HSDC, and other concerned government agencies and entities or offices of the city government for their information and appropriate action.

The city government will try to seek clarification on the proposal of the HSDC for the early transfer of the management of the Maharlika Livelihood Complex to the city but the corporation will still lease out the areas, thus, the need to authorize the city chief executive to pursue the negotiations with the corporation to clear out the contents of the agreement that will be stricken for the said purpose.

The Maharlika Livelihood Complex, includes the structures being occupied by the MAR-BAY building, that serves as one of the commercial centers operating right in the heart of the city and that the same is currently being managed and operated by the agriculture department through the HSDC.

By Dexter A. See
Photo by: Armando M. Bolislis