VENDORS at the Carbon Public Market in Cebu City oppose the proposal to reclassify lots for the construction of Market Redevelopment Phase 1B in Barangay Ermita, citing potential rent increases, loss of stall spaces and others.
During the executive session on Thursday, Nov. 28, 2024, representatives of vendor groups opposed Cebu2World Development Inc.’s proposal for a variance application of the land use and parking exemption, seeking to reclassify the lot from Institutional 2 to Commercial 2 Zoning.
Councilor Nestor Archival, who called for the executive session, explained that there must be an intensive study and review of the implication of the variance application on the affected stakeholders.
If approved, the reclassification will likely affect the vendors and tenants, Archival said, as it will increase the real estate tax of the lot, which will potentially impact stakeholders.
He also questioned the necessity for the reclassification when the original contract was to restore Freedom Park and not to include or install structures.
The Cebu City Government signed a joint venture agreement (JVA) with Megawide Construction Corp. for the redevelopment and renovation of the Carbon Public Market.
The Cebu City Zoning Board passed a board resolution allowing Cebu2World for the variance application, which was endorsed to the City Council for adoption on Nov. 6.
Anna Marie Oriosa of the Carbon-hanong Alyansa and Calderon Barracks Association said during the executive session they were not informed of the variance application and only heard of the development after being summoned to attend the session.
After reading the resolution, Oriosa said they were surprised that the Zoning Board had already conducted a public hearing.
She emphasized that the group is not against the development but wants assurances regarding their concerns and clarity on the project’s potential impacts.
Affected sales
Oriosa questioned why Cebu2World submitted the variance application three years after the JVA was finalized. “Why did they not apply even before the signing of the JVA? Don’t you think we can describe it as ‘bad faith’ and who applied for the variance of the zoning?”
Oriosa said she and her fellow vendors had already experienced low sales and fewer customers after the Cebu2World expanded their wall up to seven meters along the Warwick Barracks, resulting in the narrowing of the pathway at the Escaño and Calderon Streets.
“It gave our customers a hard time to access our market stalls, and this is the reason that we have fewer customers and low sales, ” she added.
She also raised questions about the lack of information dissemination regarding the public hearing, questioning where and when it was held, how it was announced and who was invited. “We are saddened that we are being skipped again, similarly to the same situation during the signing of the JVA before,” Oriosa lamented.
Oriosa said that retaining the lot classification as institutional allows for continued control by the Cebu City Government, which prioritizes public welfare, as opposed to a private firm supervising the lot with a “profit mindset.”
“If reclassified, will Cebu2World now have control over the rental fees and other charges? Does the market code still have control if the lot will now be managed by a private firm?” she asked.
She added that there is a pending case regarding the fencing project.
Oriosa also questioned the assurance that vendors would have the security of tenure and retain their slots, adding concerns about potential mistreatment or difficulties they might face.
Arlene Subing-Subing, a member of the Carbon-hanong Alyansa, also expressed the same sentiment to the council.
Subing-Subing said if the variance is approved, an increase in the rental rate is imminent and will likely result in the slow loss of the existing vendors due to the high rate.
Oriosa urged the council to intervene by temporarily removing the fence and restoring it to its original position to benefit vendors and customers, especially during the night market.
The fence has affected more than 10 vendor associations in the area, said Oriosa.
During the discussion, Councilor Noel Wenceslao explained that the variance application occurred pursuant to the Zoning Classification Ordinance of 1996 when the Zoning Board approved the reclassification of the lot or any infrastructure.
Wenceslao also responded to Archival’s question on the implication of the variance application, in which one of the requirements was a public hearing as it will have an impact.
Obligation
Erwin Gok-ong, chief executive and former chairman of the Cebu Market Vendors Multipurpose Cooperative based in Carbon Public Market, said that after the signing of the JVA, the City Government is obligated to consider the interest of the Megawide.
Gok-ong clarified that he does not blame the councilors for making necessary legislative measures in favor of the JVA, however, he stressed that if the City Government failed to increase rental rates of the Carbon Public Market subject to the recommendation of the Megawide, it would result in compensation loss in terms of financial, term increase, share retention, or items agreeable to both parties.
Aside from rental rates, Gok-ong also feared the City Government would increase business taxes and other regulatory fees at the time of the full implementation of the Megawide project.
“The share of the City is P50 million only per year, however, under the JVA, the City is obligated to dispose of the garbage. If the P50 million is subject to taxation, it will be the City Government that will pay for the tax,” said Gok-ong.
In response, Wenceslao, who chairs the committee on budget and finance, said there is no proposal yet on the increase in regulatory fees and other charges as of the moment.
He stressed that this will require the council’s approval if ever proposed.
Archival, on the other hand, stressed he objected to the approval of the JVA during the administration of the late mayor Edgardo Labella.
Under the JVA, Megawide will lead the modernization of the Carbon Public Market in three phases: the development of Carbon Market Units 1 and 2 and Compaña Maritima (Phase 1), the development of Freedom Park (Phase 2) and the development of Sitio Bato and Unit 3 (Phase 3.)
In return, the Megawide will collect and receive all revenues from the development and operation of the project site, including those from the operations of the public market. / EHP