BAGUIO CITY – The city government has given hundreds of lot and building lessees within the city-owned property at Hilltop to agree for an increase in their rentals until August 20 prior to the renewal of their expiring 15-year lease contracts.
In a recent meeting with the concerned lot and building lessees, Mayor Mauricio G. Domogan reminded them that they must be reasonable in deciding what would be the rentals on their occupied spaces for the local government to renew their lease contracts for a reasonable time.
The local chief executive cited the lot and building owners had been earning from the city-owned property over the past four decades considering that the local government was remised in its job in getting back the properties after the initial expiration of the original lease contracts over the property.
Under the original lease contracts of the lot and building lessees, all improvements done on the property of the city government will remain with the city after the expiration of the 15-year agreement.
Domogan opined the framers of the original contract were of the belief that the local government will be able to recover their expenses in improving the city-owned properties, thus, it was limited to the same period.
However, the city government was obviously remised in its job in enforcing its obligation, thus, the lease contracts have been repeatedly renewed several times.
Domogan claimed most of the lease contracts will expire this year that is why the local government is now invoking its right over its properties prior to the renewal of their contract so that they will be obliged to pay the prescribed rentals.
From P0.75 per square meter per day as rentals, the lot and building owners are now required to pay P2 per square meter per day for the land and a similar rate for the different floors of the buildings located within the Hilltop area.
Local officials and the concerned lessees will be meeting again on August 20 to decide whether or not to finalize the renewal of their contracts prescribing the new rates in order to generate more funds for the city government.
Most of the lessees are supportive on the proposal to increase the lease rentals on the lots and buildings owned by the city government that is why their lease contracts could be finalized before the end of the month.
The Hilltop area is one of the income-generating properties of the city government that is within the city market that is why the city government is doing its best to significantly maximize the utilization of the same for income purposes.
Domogan said funds to be generated from the increased rentals over the Hilltop property will be plowed back to the people of the city through the implementation of more development projects and enhancement of the delivery of basic services to the local residents in the grassroots level.
By Dexter A. See
