The Baguio City Council will review the feasibility study for the proposed redevelopment and sustainable management of the Maharlika Livelihood Center (MLC) as a city-operated Local Economic Enterprise (LEE) during its regular session on October 12, 2026.
The presentation will give the City Council the financial, physical, operational, and governance basis for considering the rehabilitation of the city-owned commercial and livelihood facility following its return to City management in 2025.
The feasibility study estimates the rehabilitation investment at P950.27 million. Under the proposed layout, the rehabilitated facility will have 7,929.57 sqm of leasable area, 616 stalls, and 148 parking slots.
The study examines the MLC’s history and management, its existing physical and operational conditions, and the challenges affecting its use and commercial viability. It also considers the proposed staffing, operating expenses, rental and service charges, collection efficiency, escalation assumptions, depreciation, and modeled income tax in projecting the facility’s financial performance.
Six financial scenarios were evaluated using interim guidelines rates, prevailing market rates, and discounted prevailing market rates, with each rate structure assessed both with and without leasehold rights.
Among the alternatives, the study identifies prevailing market rates with leasehold rights as having the strongest projected financial performance. The analysis includes projected income and cash flows, payback period, return on investment, and internal rate of return to assess the facility’s operating performance and the recovery of the proposed rehabilitation investment.
The feasibility study is intended to provide the City with a basis for its consideration of the proposed rehabilitation investment, rental rates, and leasehold arrangements for the MLC.
Invited to the presentation are the Maharlika Transition Committee headed by Atty. Leticia Clemente, representatives of the City Legal Office, City Buildings and Architecture Office, City Accounting Office, City Treasury Office, and City Mayor’s Office Chief-of-Staff Samantha Jean Hamada.
The presentation will form part of the City Council’s consideration of the proposed redevelopment and future management of the Maharlika Livelihood Center. -Jordan G. Habbiling
