2013 R - 07 - AUTHORIZING THE HONORABLE CITY MAYOR JAMES GORDON, JR. TO ENTER, EXECUTE AND SIGN AN AMENDED CONTRACT OF LEASE WITH SM PRIME HOLDINGS, INC. TO ENSURE GREATER PROTECTION AND MAXIMIZE BENEFITS ACCRUING TO THE CITY OF OLONGAPO, IN A MANNER CONSISTENT WITH LAW
EXCERPTS FROM THE
MINUTES OF THE REGULAR SESSION OF THE SANGGUNIANG PANLUNGSOD OF OLONGAPO, HELD
ON JANUARY 16, 2013 AT THE CITY HALL.
PRESENT:
Hon.
Rolen C. Paulino - - - - - - - - - - - - - - - - - City Vice-Mayor & Presiding Officer
Hon. Rodel S. Cerezo - - - - - - - -
- - - - - - - - - - City Councilor
Hon. Eyrma Yvette Marzan-Estrella -
- - - - - - - “ “
Hon.
Aquilino Y. Cortez, Jr. - - - - - - - - - - - - - “ “
Hon.
James G. Delos Reyes - - - - - - - - - - - - - “ “
Hon.
Gina Gulanes-Perez - - - - - - - - - - - - - - - “ “
Hon. Elena C. Dabu - - - - - - - - -
- - - - - - - - - “ “
Hon.
Eduardo J. Piano - - - - - - - - - - - - - - - - - “ “
Hon.
Edna A. Elane - - - - - - - - - - - - - - - - - - - “ “
Hon. Noel Y. Atienza - - - - - - - -
- - - - - - - - - - “ “
Hon.
Sarah Lugerna Lipumano-Garcia - - - - - - - “ “
Hon.
Dolly Mae M. Ramos - - - - - - - - - - - - - - - SK Federation President
ABSENT:
Hon. Carlito A. Baloy - - - - - - - - - - - -
- - - - - - - President, Liga ng mga Barangay
RESOLUTION NO. 07
(Series of 2013)
A
RESOLUTION AUTHORIZING THE HONORABLE CITY MAYOR JAMES GORDON, JR. TO ENTER,
EXECUTE AND SIGN AN AMENDED CONTRACT OF LEASE WITH SM PRIME HOLDINGS, INC. TO
ENSURE GREATER PROTECTION AND MAXIMIZE BENEFITS ACCRUING TO THE CITY OF
OLONGAPO, IN A MANNER CONSISTENT WITH LAW
WHEREAS,
the city passed a series of legislation and complied with all legal
requirements with respect to the original 2009 Contract of Lease between the
City and SM Prime Holdings, Inc. as reflected in the following: 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”; Resolution No. 79, Series of 2009; Resolution No. 162,
Series of 2009; “A Resolution accepting the Proposal of SM Prime Holdings,
Inc., and approving the Competitive Challenge procedure as a mode of awarding
the lease contract relative thereto, subject to existing auditing rules and
applicable legal requirements”; Resolution No. 169, Series of 2009. “A
Resolution approving the Joint Recommendation of the Negotiation Team of the SM
Prime Holdings, Inc. relative to the Unsolicited Proposal for the long-term
lease of the Olongapo City Mall”; Resolution No. 158 Series of 2009, “A
Resolution repealing city council resolution No. 114 Series of 2009, to secure
the best possible terms for, and optimum benefits from, the long-term lease of
City Mall”; Resolution No. 170, Series of 2009, “ A Resolution confirming the
Negotiations and approving the Terms of Reference, guidelines and schedule of
activities relative to the SWISS/Competitive Challenge mode for the long-term
lease of Olongapo City Mall”; Resolution No. 182 Series of 2009, “A Resolution
approving the issuance of a Notice of Award of the long-term lease of the City
Mall to SM Prime Holdings, Inc. and authorizing the City Mayor to enter into a
contract of lease pursuant thereto”;
WHEREAS,
the contract and eventual partnership with SM Prime Holdings, Inc. has reaped
various additional spill-over and corollary benefits to the local community
which include initiatives such as the provision for SM college scholarships for
qualified Olongapo youth, SM provisions for a mobile clinic / health van which
assist barangays in health service, SM provision for tree planting or
agriculture related initiatives, employment generation for almost three
thousand (3,000) Olongapo City residents from its date of permits and taxes to
the city, conduct of activities which promote the city’s local talents and
tourism, tie-ups with the city’s social service offices such as with the City
Health Office and the James L. Gordon Memorial Hospital and the attraction of
new businesses to the city;
WHEREAS,
to ensure that all contact terms and conditions and processes relating thereto
would be just, equitable, legal and transparent, with the goal of facilitating
the realization of the greatest possible advantage and benefit to the City of
Olongapo, the City Finance Team caused an updated review of the 2009 Contract
of Lease with SM Prime Holdings, Inc.;
WHEREAS,
as per Finance Team review, there is a need to integrate, modify or amend
certain provisions in the Contract of Lease which effectively increased the
incentives to the city and strengthened its protective provisions in favor of
the city;
WHEREAS,
as a matter of legal consequence and necessity, there is a need to enter,
execute and sign an Amended Contract of Lease to ensure that it would be in
consonance the best interests and greatest advantage to the city, with the
following recommended terms to be integrated in the pertinent portions of the
2009 Contract of Lease between the City of Olongapo and SM Prime Holdings,
Inc.: (a) a provision that the ownership of the City Mall building which SM
Prime Holdings, Inc. rehabilitated, repaired, developed and renovated shall
revert back to the city after expiration of the lease term without need of
reimbursement; (b) any adoption of previous or new terms and conditions of
lease or any agreement in the event of its renewal after expiration of the lease term shall be
made subject of negotiations and mutual agreement between the City and SM Prime
Holdings, Inc.; (c) incentives shall be made subject to existing city and
national legislation and regulations as to coverage and limitations; (d)
provisions in the Contract shall be understood to be made subject of
implementation and enforcement, in a manner consistent with pertinent laws,
rules and regulations;
NOW,
THEREFORE, on motion of City Councilor Gina G. Perez, on behalf of City
Councilors Rodel S. Cerezo, Eyrma Yvette Marzan-Estrella, Elena C. Dabu,
Eduardo J. Piano, Edna A. Elane, with the majority decision of the Members of
the Sangguniang Panlungsod present;
RESOLVED, AS
IT IS HEREBY RESOLVED, by the Sangguniang Panlungsod in session assembled,
to authorize as it hereby authorizes, the Honorable City Mayor James Gordon,
Jr. to Enter, Execute, and Sign an Amended Contract of Lease with SM Prime
Holdings, Inc. to Ensure Greater Protection and Maximize Benefits Accruing to
the City of Olongapo, in a manner consistent with law.
APPROVED
UNANIMOUSLY, January 16, 2013.
Labels: AUTHORIZING, business and economic enterprise, CONTRACT OF LEASE, SM PRIME HOLDINGS
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