For the first time in three years, the Sangguniang Panlungsod (SP) was sharply divided over an issue but voted decisively to favor the P60-million rehabilitation plan of the unfinished Agora building.
The unfinished structure will be developed into a modern three-storey business center which will cater to businesses that will not compete with the shopping centers in the area.
The new business hub will be equipped with escalators, service elevator, parking area for approximately 68 vehicles, 24-hour security and a multi-purpose roof deck which will host functions and public gatherings.
A consultant of J.L. Apostol revealed that the modern complex will generate a guaranteed income of more than P5-million yearly based on conservative computations.
Based on the contract, the consortium will shoulder all rehabilitation expenses and operate the complex for a period of 25 years, afterwhich, the building will be reverted back to the city.
While the city is assured of no less than P5-million yearly income, the contract stipulates that the city may get 20% of the yearly gross receipts (from tenant's rentals) if it is higher than P5-million.
The consultant's revenue projections showed that in their first year of operations alone, they are expected to realize a gross revenue of 30.6-million.
The consultant said that it is more likely that the city government will get more than the guaranted amount, which, if based on projections for the first year, the city may get over P6-million.
The revenue from rentals, however, excludes the yearly revenues it will bring to the city in terms of taxes, permits and licenses.
By the end of the 25-year ROT, the business center is expected to earn over P65-million from its tenants. The computations, according to the consultant, was based on 80% occupancy.(source: Bohol Chronicle, 3/25/2007)
posted by dtibohol @ 3:41 PM
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