2008 R - 54 - AUTHORIZING HONORABLE MAYOR JAMES GORDON, JR. TO PREPARE THE TERMS OF REFERENCE TO BID OUT FOR LONG TERM LEASE, THE OLONGAPO CITY MALL

EXCERPTS FROM THE MINUTES OF THE REGULAR SESSION OF THE SANGGUNIANG PANLUNGSOD OF OLONGAPO, HELD ON APRIL 23, 2008 AT THE CITY HALL.

PRESENT:
Hon. Cynthia G. Cajudo - - - - - - - - - - - - - City Vice-Mayor & Presiding Officer

Hon. Gina Gulanes-Perez - - - - - - - - - - - - - - - - City Councilor
Hon. John Carlos G. Delos Reyes - - - - - - - - - - - - “ “
Hon. Rodel S. Cerezo - - - - - - - - - - - - - - - - - - - - “ “
Hon. Sarah Lugerna Lipumano-Garcia - - - - - - - - “ “
Hon. Edwin J. Piano - - - - - - - - - - - - - - - - - - - - - “ “
Hon. Angelito W. Baloy - - - - - - - - - - - - - - - - - - “ “
Hon. Aquilino Y. Cortez, Jr. - - - - - - - - - - - - - - - - “ “
Hon. Anselmo A. Aquino - - - - - - - - - - - - - - - - - - “ “
Hon. Elena C. Dabu - - - - - - - - - - - - - - - - - - - - - “ “
Hon. Cheenee F. Hoya - - - - - - - - - - - - - - - - - - - - SK Federation President

ABSENT:

Hon. Carlito A. Baloy- - - - - - - - - - - - - - - - - - - - - President, Liga ng mga Barangay
(On Leave)

RESOLUTION NO. 54
(Series of 2008)

A RESOLUTION AUTHORIZING HONORABLE CITY MAYOR JAMES GORDON, JR. TO PREPARE THE TERMS OF REFERENCE TO BID OUT FOR LONG TERM LEASE, THE OLONGAPO CITY MALL


WHEREAS, the City Government of Olongapo has been consistently extending financial subsidies to the Olongapo City Mall;

WHEREAS, the said financial subsidy can be better utilized by the City Government of Olongapo for more socially responsive projects;

WHEREAS, the retirement of loan obligations of Olongapo City and financial subsidies pertaining to the Olongapo City Mall will result to more socio-economic projects of Olongapo City Government which will ultimately benefit Olongapenos;

WHEREAS, the execution of a long term lease of the Olongapo City Mall is financially sound and more advantageous for the City Government;

WHEREAS, to streamline the requisites for the Bid of the long term lease of Olongapo City Mall, the following conditions in the Terms of Reference ought to be satisfied:

1. The Lease Period shall not exceed 48 years.
2. The Annual Lease Rate shall be 5% to 10% of the Gross Rent collected from the mall tenants during the calendar year. Gross Rent is defined as regular rent derived from standard stall spaces on the ground and second floor. Excluded from Gross Rent computations are Common Usage Service Area (CUSA) charges, aircon charges, parking fees, exhibition income, security deposits, late payment penalties, and any non-regular income of the mall.
3. The lease shall cover the mall structure, all improvements and the loan on which the building stands on. It also shall include the parking area and the creek side improvements as part of the lease.
4. The winning Bid must allow 20 years to 30 years of the lease income to be pre-paid to the City upon signing of the Lease Contract.
5. The winning Bid must have “Goodwill Fee” equivalent to at least PhP50 Million to be paid to the City upon signing of the Lease of Contract.
6. The winning Bid must allow the City to receive the sufficient cash up front to be able to retire the debt of the Olongapo City Mall with DBP and Land Bank of the Philippines.
7. Upon start of the Lease Period, the lessee shall take over full management of Olongapo City Mall. Lessee shall have full autonomy to operate and manage the mall.
8. The winning Bid must honor all existing Lease Contracts of mall tenants, provided their rent payments are not arrears.
9. As an incentive, the City will grant a 5-year tax holiday to OCM from payment of Business Taxes and all Fees and Charges due to the City Government.

NOW, THEREFORE, on motion of Councilor Angelito W. Baloy, with the majority decision of the Members of the Sangguniang Panlungsod present;

RESOLVED, AS IT IS HEREBY RESOLVED, by the Members of the Sangguniang Panlungsod in session assembled to authorize, as it hereby authorizes Honorable City Mayor James Gordon, Jr. to prepare the Terms of Reference to bid out for long term lease, the Olongapo City Mall.

Let copies of this Resolution be furnished to the Olongapo City Mall Administrator for his information and guidance.

APPROVED, April 23, 2008.


CYNTHIA G. CAJUDO
City Vice-Mayor & Presiding Officer


GINA GULANES - PEREZ JOHN CARLOS G. DELOS REYES
City Councilor City Councilor

RODEL S. CEREZO SARAH LUGERNA LIPUMANO-GARCIA
City Councilor City Councilor
(Opposed)

EDWIN J. PIANO ANGELITO W. BALOY
City Councilor City Councilor

AQUILINO Y. CORTEZ, JR. ANSELMO A. AQUINO
City Councilor City Councilor


ELENA C. DABU CARLITO A. BALOY
City Councilor President, Liga ng mga Barangay
(On Leave)


CHEENEE F. HOYA
SK Federation President

ATTEST:

ELFLIDA S. SALMON
Council Secretary

APPROVED BY HIS HONOR, THE CITY MAYOR ON______________________.


JAMES GORDON, JR.
City Mayor

ATTEST:

DELFIN A. JUICO, JR.
Secretary to the City Mayor