ALAMINOS SHOPPING MALL RATIONALE OF THE PROJECT

I. INTRODUCTION

The City of Alaminos is strategically situated to become the center of trade and commerce in Western Pangasinan.

Like any growing city that has achieved a certain momentum of growth, it has to capture every opportunity for continued progress. In the midst of other areas similarly vying for increased competitiveness as a center of commerce, it has to provide the atmosphere and incentives for further business growth. Thus, by being competitive in attracting inward private sector investment, the city can be assured of maintaining its role of being the business center in Western Pangasinan. On the other hand, by doing nothing, other municipalities that are more progressive and creative will be the ones attracting inward investments. This may result to stagnation and decline.

The attainment of city hood of Alaminos in 2001 brought a rapid transformation of the city into a busting center of commerce. Definitely, city hood sealed Alaminos' leadership role. Thus, any contribution from the private sector in terms of inward investments now play a significant role.

II. STATEMENT OF OBJECTIVES

It is the objective of this report to present the shopping mall as a contribution to progress. Its impact on the vision and economic objectives of Alaminos, is also evaluated.

The shopping mall is envisioned to meet the following major objectives:

1. Shopping mall as a trend is considered to be an urban phenomena. Where there is progress, there are shopping malls. It mores progress directly felt by the general population. It changes purchasing habits and elevates the standard of the population.

2. It has a positive impact on economic progress. In Mandaluyong and Pasig, where shopping malls sprouted, rapid progress followed. Soon, new office buildings were being put up in surrounding areas. This is because, business activities converge where there are new developments. Land prices also increase. When construction of the malls started, land prices in the surrounding areas started moving up.

3. Shopping malls magnet population from other municipalities. It actually brings economic progress in terms of creating new opportunities in trade and commerce. Where people are, there is commerce. Here are some examples; a) when SM City put up, people from as far as Bulacan traveled to Quezon City; b) Alabang Town Center magnets population from as far as Los Banos, Laguna. Modern subdivisions started getting populated; c) The Urdaneta Magic Mall is also a prime example. People from Dagupan and Baguio shop in Urdaneta. Malls also complement tourism. Tourist generally prefer having modern amenities near tourist spots.

4. By bringing progress, shopping malls prevent outward migration of the population.

5. Shopping mall raise government revenues. Where shopping malls are, land values appreciate. Additional taxes and fees are raised not only from the shopping mall developer and location themselves but from the additional commerce and trade created.

5. Employment Generation. Shopping malls generate employment: sales personnel cashier, accountants, janitor, security guards, manager, delivery personnel, waiters, cooks, etc. Also, additional jobs are created by new businesses that are a result of increased commercial activity.

III. THE PROPOSED AlAMINOS PUBLIC MARKET AND MALL

Envisioned to be the first of its kind in Western Pangasinan. Highlights are:

Note: These are strong anchors and locators that will make the mall and Alaminos, "THE" destination in Western Pangasinan.

Modern Architecture, Fully Airconditioned, Atrium, Escalators.

IV. QUANTIFIABLE DIRECT BENEFITS TO CITY GOVERNMENT

Non-Qualification Direct Benefits:

1. Additional taxes from increased employed population, estimated at 500 people.

2. Additional real estate taxes from increased land valuation.

3. General well-being of the population; increased productivity and income.

V. PROJECT COST

Total Project Cost: P220.0 Million

VI. FINANCIAL PACKAGE

Alaminos City Government Share: P50.0 Million

Developers Share: P110.0 Million

VII. LEGAL FRAMEWORK

1. Long-term land lease on government land, site of the mall, for 45 years;

2. Long-term building lease on building put up using P50.0 M funds, co-terminus with land lease; pre-paid lease to cover loan amortization of LGU.

VIII. ADVANTAGES TO THE MUNICIPAL GOVERNMENT AS LESSOR

1. Additional revenues from land lease.

2. No risk on loan; fully paid by rental; LGU IRA will not be utilized.

3. Improvement goes to city after lease term.

4. Impact project without cash out.