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The
much-awaited rehabilitation of the erstwhile Agora market
into a modern 3-storey business center will start before the
month ends as City Mayor Dan Lim sealed negotiations with
Zamboanga-based developer J.L. Apostol last Friday.
With
this development, the city government expects to earn as much
as P15-million in annual revenues as the contractor assured
to finish the project before November this year.
During
an interview with the Chronicle yesterday, Mayor Lim asserts
that the Agora property which has been idle for the past 10
years will now be a major income-generating enterprise for
the city minus the hassle of operations since it will be reconstructed
on a rehabilitate-operate-transfer (ROT) scheme for a contract
duration of 25 years.
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According
to the mayor, the J.L. Apostol consortium, which is
an alliance of mall-developers and management experts,
will infuse P60-70 million to finish the existing structure
and guarantees a P5-million net income for the city
government even if they will sustain losses on the first
year of operations.
Mayor
Lim said he will endorse the ROT deal to the Sangguniang
Panlungsod (SP) for approval on Wednesday. Afterwhich,
the contractor can commence with the construction.
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PROFITABLE
DEAL
The
consortium will operate the modern business center for 25
years while giving 20% of its annual gross earnings to the
city government or a P5-million guarantee per year, whichever
is higher.
However,
income forecasts of the consortium projects a minimum of P8-million
for its first year of operations. Nevertheless, if they show
losses, the city is already guaranteed a minimum of P5-million
annually.
Aside
from the guaranteed income, the city will still get revenues
out of the tenants' sales tax, mayor's permit and licenses,
Mayor Lim said.
HIGH-END
BUSINESS HUB
The
mayor said the Agora rehabilitation will be a major legacy
of his administration which has been unused since 1995 when
the old public market was razed by fire.
According
to Mayor Lim, the contractor can finish the project in a span
of eight months.
It
may be recalled that the modern business center was publicized
for bidding in November and December last year in one of the
national dailies with only J.L. Apostol showing interest in
the ROT contract.
City
Administrator Archt. Walter Toston told the Chronicle that
the modern 3-storey commercial complex will cater to high-end
firms that will not duplicate and compete with the nearby
shopping centers.
Businesses
such as banks, entertainment and recreation centers, first-class
restaurants and commercial offices will be allowed by Mayor
Lim to operate in the commercial center.
Mayor
Lim had wanted private investors to assist in finishing the
P50-million structure which has been criticized by the public
due to the missed opportunities for revenue.
The
unfinished structure has also become a major eyesore in the
city's main shopping district.
As
to the question why there is only one bidder, Toston explained
the requirements of the ROT scheme easily restrains other
contractors since the Agora rehabilitation required technical
expertise from the developer in operating the business center.
After
25 years, the commercial center will be turned-over to the
city government.
The
present floor area of the unfinished structure is 14,747.55
square meters but will be trimmed down to 9,931.38 square
meters (total floor area of all three storeys) from the sides
in order to provide enough parking spaces to its users.
There
will be parking spaces for over 60 vehicles while a motorcycle
parking area will also be provided as well as a separate utility
parking (loading and unloading) area for utility vehicles
and delivery vans.
The
modern building will have service elevators and a roof deck.
The
city government will prepare the guidelines on the type of
businesses that will be allowed to operate within the building.
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