SM Prime triggers a fight in the community for the future of the famous market

Local traders at the historic Baguio City Public Market are working hard to raise $70 million (4 billion Philippine pesos) to regain control of the market’s redevelopment from SM Prime Holdings (SMPH), reports The investigator.

The market, which has been a major commercial hub and cultural landmark in the Philippines since the early 20th century, is at the center of a rivalry between vendors and the mall developer, who has proposed building a 4.6 billion Philippine peso mall.

Represented by the Baguio Market Vendors Association (Bamarva), the vendors aim to maintain the market as a community-driven place that preserves its heritage.

Zosimo Abratique, former chairman of the Baguio chapter of the Philippine Chamber of Commerce and Industry, is leading efforts to raise money from the market's approximately 4,000 traders.

He proposed that each bidder contribute US$17,500 (1 million Philippine pesos) with the help of local banks to challenge SMPH's offer.

“We believe that sellers should have a say in the redesign of the market,” Abratique said.

“It’s not just about modernising the market, it’s also about preserving our culture and making sure the local community benefits from it.

The proposal must pass the city council before being subjected to a Swiss Challenge, a process in which the government presents the details of SM Prime's proposal to the public and allows other companies or stakeholders to submit counter-offers that match or exceed SM's investment.

In 2020, Bamarva attempted to push through a similar redevelopment project with a vendor-led proposal. However, the group was unable to meet the city's requirements, so SMPH was granted original proponent status (OPS) for the project.

SMPH, on the other hand, has adapted its proposal to address concerns about preserving the market's cultural significance.

The company originally wanted to manage 70 percent of the redeveloped market and leave 30 percent under the city's administration.

After consultations with the city government, SMPH agreed to reverse these terms. The city now controls 70 percent of the market and SMPH manages the remaining 30 percent.

Mayor Benjamin Magalong said this was the result of a series of discussions between the city government and the retail development giant.

“The intention is no longer to build a market that is profitable for SM,” Magalong said. “They are no longer thinking about how to recover their investment. They just want to give it back to Baguio City as a legacy.”

If SMPH wins the contract, the mall giant intends to build a $80.5 billion (PHP 4.6 billion) multi-story retail building in four and a half years. years, said Egbert Lim, senior assistant vice president of operations at SM Prime.

“We cannot ignore the cultural significance because we all remember buying ‘pasalubong’ (gifts) from the market as children whenever we visited Baguio,” Lim concluded.

The company said its offer would benefit the city, create 3,000 jobs and increase parking options in a tourist destination plagued by daily traffic congestion.