Regulated sublease system at city market proposed

May 8, 2021 Metro BLISTT

Councilor Benny Bomogao has filed an ordinance seeking to regulate the sublease system at the city’s public market. The proposed ordinance is a proposed amendment to Sections 160 and 161 of Tax Ordinance Numbered 2000-001.
In his proposed amendatory ordinance, Bomogao recognized that the subleasing of stalls at the public market exists, claiming the practice is “not in any way illegal, [and] it can be permitted subject to some regulations that should fairly benefit the city.”
The councilor further asserted that subleasing may spur more economic activities as the original lessor is permitted to venture into other economic opportunities yet maintaining the stall, paying the rent, taxes, and fees, and creating opportunity for others at the same time.
However, to bolster economic growth in the city, leaseholders in the city market may be permitted to sublease their stalls under certain conditions. Under the proposed amendment, any person who has been awarded the right to lease a market stall in accordance with the provisions shall occupy, administer, or shall be present personally at their stall or booth, but they may employ any Filipino person to manage it.
The employed individual must be registered with the Baguio City Market Authority (BCMA), otherwise, the stall shall be ordered closed for one month. Subleasing of stalls/ booths in the market shall be allowed under the following conditions:
The registered leaseholder has been leasing the stall/booth for an uninterrupted period of five years from the award or approval of lease; A sublease contract shall be submitted to the market superintendent; The sublessee must be a resident or a registered voter of Baguio City; The sublessee must not be a registered lessee, sublessee, partner, or dummy of a stall/booth at the city market or any satellite market or any stall/booth found elsewhere and managed by the city, or must not be a concessionaire of any business activity in the city; Thirty percent of the overhead rental in the sublease contract in excess of the rental to the city shall be paid by the leaseholder in addition to the rent in the original contract with the city; Only one-time subleasing shall be allowed.
The sublessee shall not be allowed to re-sublease the stall/booth; and Termination of sublease must be coordinated with the BCMA. Under the ordinance, failure to conform with these set conditions shall have corresponding sanctions.
The proposed ordinance has been approved on first reading and referred to the Sanggunian’s Committee on Laws, Human Rights, and Justice for review and recommendations.
Jordan G. Habbiling/ABN