Baguio City Vendors Rally to Reclaim Market from Mall Developer
Small traders and business owners in Baguio City are taking significant steps to retain control of the century-old Baguio City Public Market, aiming to raise P4 billion to counter a proposal by a major mall developer. The developer, SM Prime Holdings, has offered to build a P4.6 billion retail complex that could reshape the summer capital's iconic market.
The Fight to Retain Control
Zosimo Abratique, a former president of the Baguio chapter of the Philippine Chamber of Commerce and Industry, has urged the estimated 4,000 market vendors to contribute P1 million each. These contributions would be underwritten by local banks, enabling the vendors to compete in the market modernization project when SM Prime's unsolicited offer is put to a Swiss Challenge, potentially by late 2024 or early 2025.
Abratique has been deeply involved in this process, participating in public consultations regarding the city's 3.9-hectare property, where the public market operates. He had previously advocated for a vendor-led redevelopment plan, which he proposed in 2020 as the head of the Baguio Market Vendors Association (Bamarva). This was after SM Prime and Robinsons Retail Holdings made unsolicited offers to revamp Baguio's historic but deteriorating market.
SM Prime's Proposal and Cultural Considerations
SM Prime Holdings was granted original proponent status by the Baguio government and was nearing the finalization of a 50-year lease agreement at the start of 2024. However, the enactment of a new public-private partnership law (Republic Act No. 11966) in January has mandated new procedures for unsolicited project proposals. The seventh public consultation, organized by the city government since 2019, was one of the requirements under this law.
Should SM Prime secure the contract, they plan to construct a P4.6-billion multilevel retail structure over four-and-a-half years. A temporary market building will be set up at the city's slaughterhouse compound, a few blocks away, allowing vendors to continue their operations during the construction.
Egbert Lim, SM Prime's senior assistant vice president for operations, emphasized the cultural importance of the Baguio City Public Market, stating that:
"We cannot ignore the cultural significance [of the Baguio City Public Market] because we all have memories growing up of buying 'pasalubong' (gifts) at the market whenever we visited Baguio."
Lim assured that the modernized market facility would "retain the culture, color, and flavor" of the original market, which has historical roots dating back to the early 1900s when Ibaloys traded goods during the American colonial period.
Challenges Faced by the Vendor-Led Proposal
The initial unsolicited offers from SM Prime and Robinsons were met with skepticism and even anger from the vendors and Baguio residents, who had expected the city government to fund the market's modernization.
When Mayor Benjamin Magalong assumed office in 2019, he terminated a previous modernization contract that had been awarded in 1996 to Uniwide Sales and Realty Development Corp. Uniwide was dissolved by the courts in 2016 due to bankruptcy, and the court-appointed liquidator accepted Baguio's decision to rescind the long-stalled contract. The project had been mired in legal disputes for nearly 26 years due to lawsuits filed by Bamarva and other vendor groups challenging the deal's legality.
Public distrust in large corporations fueled Bamarva's efforts to raise P2.6 billion for the vendors' proposed market redevelopment plan, which Abratique initiated in 2020. However, Bamarva struggled to complete all the required documentation to advance the project.
Abratique pointed out that Bamarva was initially part of a technical working group that had been formed by Mayor Magalong to develop a market modernization plan that would have been funded by the city. However, the city's finance team later determined that Baguio could not afford to finance the project independently, leading to the consideration of private partnerships.
The Path Forward
SM Prime's offer, if accepted, is expected to significantly impact the local economy by generating approximately 3,000 jobs and addressing the city's persistent parking issues, which have been a major concern for both locals and tourists. The proposal must pass through the City Development Council and the city council before being subjected to a Swiss Challenge.
The Swiss Challenge is a process where the government presents the details of SM Prime's proposal to the public, allowing other companies or interest groups to submit counter-offers that match or exceed SM's investment.
Mayor Magalong highlighted that, unlike other unsolicited offers, SM Prime agreed to allocate 70 percent of the retail building to market occupants under the city's exclusive control, while retaining only 30 percent for their retail operations.
Reflecting on Baguio's Future
As Baguio City navigates the complexities of market modernization, the outcome of this battle between local vendors and a corporate giant will shape the future of its iconic public market. The vendors' efforts to raise funds reflect their determination to maintain control and preserve the cultural and historical significance of the market.
Whether through a vendor-led initiative or a partnership with SM Prime, the decision made in the coming months will have long-lasting implications for Baguio's economy, culture, and community.
FAQ
1. What is the main issue between Baguio vendors and SM Prime?
The main issue revolves around SM Prime's proposal to redevelop the Baguio City Public Market with a P4.6 billion project. Local vendors are fighting to retain control of the historic market, which they believe is crucial to their livelihoods and the city's cultural heritage. They are working to raise P4 billion to counter SM Prime's plan and preserve the market's historical significance.
2. How much money are the Baguio vendors trying to raise?
Baguio vendors are attempting to raise P4 billion to challenge SM Prime's redevelopment proposal. This fundraising effort is intended to provide the vendors with the financial resources needed to compete in the Swiss Challenge process, which could allow them to retain control of the public market.
3. What does SM Prime's redevelopment plan involve?
SM Prime's redevelopment plan includes constructing a multilevel retail structure worth P4.6 billion over a span of four-and-a-half years. The plan also includes setting up a temporary market building at the city's slaughterhouse compound to allow vendors to continue their operations during the construction phase.
4. What is a Swiss Challenge, and how does it relate to this situation?
A Swiss Challenge is a process where the government presents an unsolicited project proposal to the public, allowing other companies or groups to submit competing offers that match or exceed the original proposal. In this case, SM Prime's proposal will undergo a Swiss Challenge, providing an opportunity for the vendors' plan to be evaluated and potentially considered.
5. How has the new public-private partnership law affected the project?
The new public-private partnership law (Republic Act No. 11966) requires the Baguio government to follow updated procedures for unsolicited project proposals. This includes holding public consultations and allowing for a Swiss Challenge, which has impacted the timeline and process for evaluating SM Prime's redevelopment proposal.
6. What is the significance of the Baguio City Public Market to the local community?
The Baguio City Public Market holds cultural and historical significance for the local community. It has been a central place for trading goods since the early 1900s and is integral to the local economy and heritage, making the preservation of the market highly important to both vendors and residents.
7. How will SM Prime's proposal impact Baguio's economy?
SM Prime's proposal is expected to generate approximately 3,000 jobs and improve the city's parking situation, which has been a major issue for locals and tourists. The redevelopment aims to modernize the market while contributing to the local economy, although it has faced opposition from vendors concerned about preserving the market's cultural heritage.
