The city will be managing and operating the Maharlika Livelihood Center building once the Governance Commission for Government-Owned and Controlled Corporations (GCG) will approve the recommendation of the State-owned Human Settlements Development Corporation (HSDC) for the turnover of the structure to the city government prior to the expiration of the 50-year lease agreement in 2025.
During the recent meeting of the Technical Working Group (TWG) for the early turnover of the management and operation of the Maharlika Livelihood Center to the city government, lawyer Richard Dayag stated that it was agreed that the management and operation of the building will be turned over to the city by the end of the year.
However, he claimed that the city collect the rentals of the leased stalls and remit these to the HSDC until the expiration of the lease contract.
He stipulated that the city government will be receiving from the HSDC the prescribed management fee for the management and the operation of the facility.
The city government will be using the remaining period to learn the dynamics of managing and operating such an enterprise in preparation for its full management of the facility once the GCG approves its turnover to the city.
The government had been requesting the HSDC for the early turnover of the Maharlika Livelihood Center to the city for it to operate and manage to increase its internally-generated resources.
For her part, City Budget Officer Leticia Clemente stipulated the city government will have to negotiate with the HSDC the basis of the management fee it will get, whether it will be from the gross receipts or the net proceeds whichever will be higher.
She stipulated that the city government will be using the remaining period to assess the situation and its capacity to manage such economic enterprise for future similar endeavors.
Based on the initial study by the city’s Local Finance Committee, the city government can generate more or less P70 million in gross revenue from the rentals of the over 1,000 lessees in the facility or some P50 million in net proceeds if it were to manage it.
The 50-year lease period of the Maharlika Livelihood Center, which is situated at the former site of the old Baguio stone market, is expected to expire in April 2025 although there were earlier negotiations for its early turnover same to the city for the city to manage and operate it until the lapse of the lease period.
