Monday, June 23, 2008 Porta Vaga tenant bares experience By Ernie Olson Jr.
“UNLIKE in most other commercial buildings where lease rentals are raised by a maximum of 10 percent annually, I was given the option of having mine increased by the same percentage in Porta Vaga, but on a monthly basis.”
This was the claim on Sunday of Jinky Florence Bajada, proprietress of Aces High Driving School, which is located at the roof deck of Porta Vaga commercial building since November 1, 2004.
According to her, she used to pay P200 per square meter or P2,454.40 as lease rental for her 9.44 square-meter (sq. m.) office from November 1, 2004 up to October 31, 2005; but this was raised to P380/sq. m., or P4,337.68 a month, on November 1, 2005. For the duration of both contracts, she said they paid an additional P50 and P55 monthly, respectively, for cost of utilities.
But with the new standardized rate proposal given her last April by the Porta Vaga administration, she said her lease rental was raised to P750/sq. m. or P7,575.60 monthly without any additional cost for utilities, or an increase of over 300 percent.
"If we were to compare our present regular rate against the standardized rental rates, it would escalate to proportions which are really quite flabbergasting," she wrote Father Lorenzo Abela, chief executive officer (CEO) of the Diocese of Baguio, last February 21.
"Increases for lease and rental rates are allowable by law to some degree, but to soar such rates to more than 10 percent of a previous rate is too burdensome for us to afford and we might be paying out of our profits just to satisfy your need to impose the increase you wish us to bear," Bajada explained.
To this, Abela pointed out in his reply dated last March 7 that although they in the administrative board recognize the plight of business nowadays, "considering your proposal at this time will mean we have to give the same privileges to all of our tenants."
However, in another letter dated April 14, he also said Bajada's driving school had to transfer because the building's administration is planning to install a roof over their parking deck "this week or within next week."
Abela explained "to allow the project to be implemented smoothly and to prevent accidents which may happen, we have to offer you an option to transfer (to another location) in the mall. We really apologize that this notice is too soon."
However, in the same letter, he disclosed that with the proposed transfer to the other space almost double in size than their present office, the rate will not be the same as her present shop. "At present, this is the smallest area we can offer you, unless you opt to transfer to a cart type which will serve as your receiving table. Since the project is to be implemented already, we are giving you 10 days from receipt hereof to give us your response."
Admitting to Sun*Star that she was insulted by this proposal to transfer to a cart, Bajada said in another letter to Abela on April 24 she was surprised by the sudden plan of the administration to install a parking deck roof. "We are very sorry, but for us to be transferred to another location, let alone pay so much more than what we do occupying our (present) office, is intolerably unaffordable by us."
"Secondly, since we are the ones who will be inconvenienced by your plan for implementation, we can only accept a transfer (to a place with) at least the same lease rental (as that of the one) we already have paid for. What is even worse is that our business transactions will greatly be affected by it, therefore, it should only be fair for us that the space you offer us to transfer to should be free. I respect your position to develop the mall, but only if nobody is prejudiced by it," she wrote.
In Abela's reply on the same day, he reminded the driving school owner they cannot approve her appeal for consideration and they would "appreciate to hear your response" within five days from receipt for their management to do the necessary adjustments.
A few days later, Bajada said she received another letter dated April 30, where Abela explained they "took time to deliberate on possible solutions to address and possibly accommodate (her) request to implement a gradual increase on (her) rate."
In this letter, Abela claimed they have "finally arrived at a decision we believe is beneficial to both parties, though this means sacrificing the best interest of our beneficiaries. Anyhow, we are taking our means to further stretch our assistance to you (and) as such, we prepared a scheme which offers a monthly increase from the time you go back to your shop to December 2008."
In the scheme, together with other letters between both parties, it was stated that from Aces High Driving School's present monthly lease rental of P4,337.68, this will increase gradually at a rate of 10 percent monthly or to P4,970.40 in July, to P5,491.40 in August, to P6,012.40 in September, to P6,533.40 in October, to P7,054.40 in November and to P7,575.40 in December 2008.
