BAGUIO CITY – The Maharlika Livelihood Center has been officially turned over to the City of Baguio local government unit from the Human Settlements Development Corporation (HSDC) under the Department of Agriculture (DA), following the expiration of its 50-year lease on April 28, 2025. A one-month extension was granted to facilitate a smooth transition. The ceremonial turnover took place on May 28, 2025, at the lobby of the establishment, with the transfer becoming effective on May 31, 2025.
The Maharlika Livelihood Center is recognized as the first shopping mall and livelihood hub in Baguio City. It was constructed on the site of the Baguio Stone Market, which was destroyed by fire in 1970. The property was leased by the city council to MAR-BAY & Co., Inc. in 1972, and the complex was officially inaugurated in 1982 under then-Minister of Human Settlements and First Lady Imelda Marcos. The original lease was extended in 1975 for a period of 50 years, expiring on April 27, 2025. In 1980, the rights to the Maharlika Livelihood Center were transferred from MAR-BAY to the HSDC. In 2009, former President Gloria Macapagal Arroyo issued a directive instructing the Department of Agriculture to hand over the center to the city government; however, the property remained under HSDC management by the end of her administration. Negotiations for the return of the center resumed in 2019 under Baguio City Mayor Benjamin Magalong in anticipation of the lease expiration.
Undersecretary Roger V. Navarro of the Department of Agriculture formally announced the turnover during the ceremony, stating, “We formally transfer the management of the Maharlika Livelihood Complex to the city of Baguio. After thoughtful discussions with the leaders led by Mayor Benjamin, we now entrust Maharlika’s future to the city government of Baguio. We are confident that under the leadership of the council, this historic place will continue to grow, serving as a cultural and economic cornerstone for the Filipino people and the residents of Baguio.”
Robert Arevalo, General Manager of HSDC, acknowledged the change in management but expressed optimism regarding the future of the center. “Tenants may transfer ownership of their stalls from their heirs to the next generation, but this building or possibly a better structure with improved aesthetics—will remain here. I am confident that the government and other stakeholders, including the tenants, will restore Maharlika to its former glory and beyond. I apologize that we were unable to maintain Maharlika adequately during recent years due to audit restrictions on large capital outlays and maintenance expenditures.”
Stall owner Alfonso Lutog conveyed mixed emotions about the turnover. “First of all, we are happy but also a bit saddened because the era of HSDC management has come to an end. Nonetheless, we accept that City Hall will now manage this establishment. We believe that management by the city government will yield positive results. As the mayor mentioned, there will be renovations and possibly a reduction in rent, which is a welcome development for tenants. I also look forward to the consultations with tenants and their representatives whenever changes occur.”
Employee Jake Malado also shared his perspective, stating, “My feelings are mixed. We expect that the building will be repaired and cleaned, and that tenants who do not comply with regulations will be removed. However, existing tenants are concerned about rezoning, which may result in increased rent alongside renovations. We are awaiting the official and formal announcement.”
City Budget Officer Leticia Clemente explained that operations will continue under a status quo arrangement pending the development of a comprehensive master plan for the facility. “The transition team is currently formulating policies and guidelines to be temporarily implemented in the administration and management of the complex, ensuring continuity for existing businesses,” she said. Clemente further noted that the local government will assume operation of the parking facilities, while the financial accounts of the center will remain separate from the city’s books until the transition team establishes the necessary systems.
Data from the current management indicates that over 600 businesses operate within the Maharlika Livelihood Center.
However, Clemente acknowledged that some establishments lack the required business permits from the city. The City Treasury Office is undertaking appropriate measures to compel these businesses to secure permits to comply with local regulations.
The turnover of the Maharlika Livelihood Center marks a significant milestone in Baguio City’s economic and cultural landscape. With the local government now at the helm, stakeholders express cautious optimism that the center will undergo much-needed rehabilitation and management improvements, ensuring its continued role as a vital livelihood hub for the community. By Annjay Domilies and Dexter See
