The university’s primary interest is to profit, said UP Vice President for Development Daniel Peckley Jr., in a dialogue with old Shopping Center (SC) stall owners on Nov. 27.
Peckley had earlier agreed to meet with the UP Shopping Center Stallholders Association Inc. (UP SCSAI) to clarify issues surrounding DiliMall. The new shopping complex, which replaced the old SC that burned down in 2018, is now operated by CBMS Research and Management Consultancy Services Inc. (CBMS-RMCS) under an agreement with UP.
During the meeting, a stallholder said she did not sign the leasing agreement with CBMS-RMCS believing that UP must cater to the benefit of its community.
Read: Vendors, students launch UP Not for Sale Network amid DiliMall’s looming opening – Tinig ng Plaridel
In response, Peckley said generating income to support UP’s programs reigns above the interests of the campus stall owners. To accomplish such goals, the official said the university must maximize the use of its spaces and generate profit, including from the old Tennis Court, where former SC tenants have been relocated.
“Hindi po kayo pinabayad ng unibersidad sa pag-occupy ng space na iyon. These are real estate properties of the university. The university should be raising revenues from these properties to support our program,” Peckley said. “It is not in the interest of the university that you will continue occupying that space for free.”
While the old SC stall owners maintained that they were always ready to pay rent, they also argued that the Memorandum of Agreement (MOA) UP admin signed with them in 2004 is still valid. The document stipulates that when the old SC is replaced by a proposed two-story “town center,” UP must grant the UP SCSAI a “right of first refusal.”
The MOA prioritizes the stallholders as the first buyers of the spaces on the new establishment’s first and second floors, with a 20% rental discount for the first five years of occupancy.
However, most of the SC’s non-food tenants such as photocopying services, were placed on the building’s third floor, according to the list of establishments presented during the same dialogue. Food chains like Shakey’s, KFC, Zus Coffee, and UCC Park Café will occupy the first floor and join Robinsons Easymart, which opened last Nov. 18.
Peckley defended the placement of the stores, explaining that it was based on “studies” with a third-party designer and was aligned with UP’s objective for DiliMall to generate revenue. He added that the design was also legally binding because the 2004 MOA was already “superseded” or void.
“Kunwari po kayo, Blessings, copiers po kayo. Mahirap po nating iinsist na bumaba kayo sa 2nd floor because it was designed as a food court,” said Peckley. “This design is legally binding so kami po sa OVPD bilang implementing office, we have to abide by that design. Pinag-aralan ‘yan, desisyon ‘yan ng UP. Respect UP’s decision.”
Aside from space issues, stall holders also voiced their concerns regarding the steep rental rates prescribed by CBMS-RMCS.
UP officials claim that rental costs at DiliMall amount to only P660 per square meter—lower than those of nearby private establishments, such as Gyud Food. However, this figure is misleading, said University Student Council officer Kristian Mendoza, as it was based on the presumption that tenants earn only between P1,000 to P1,500 per day.
A term in the contract states that tenants must pay either a flat rate, which covers the value-added tax and the base rent, or a percentage-based rate, depending on which is higher. The percentage rate reduces the base rent but requires stall owners to pay 7% of their gross sales to CBMS-RMCS, a condition that stallholders criticized during the meeting.
CBMS-RMCS consultant Cecil Bien Sebastian clarified that the 7% would be taken from the remaining revenue of the stallholders after deducting the total amount of discounts or the “net of discounts.” He claimed the majority of the prospective customers would be UP students and employees, who more often than not avail discounts when offered.
But under the percentage-based scheme, food stalls occupying a 20-square-meter space and earning P150,000 per month would pay up to P1,500 per square meter—contradicting the UP administration’s claim of “relatively low” rental prices. Mendoza noted that rent costs could reach as high as P1,900 to P2,000 per square meter since some stall owners earn P200,000 per month.
Peckley acknowledged the complaints of stall owners regarding rental prices but stated that he cannot guarantee they will be able to negotiate lower leasing amounts.
However, even before UP signed the contract with CBMS last year, stallholders had been trying to set up a town hall meeting with UP President Angelo Jimenez for “two years” but never received a response. Jimenez only faced the stallholders when the opening of DiliMall was met with protests.
For now, the UP administration is planning to open more stores in DiliMall by the first quarter of next year. A technical working group (TWG) led by the Project Management Office will be tasked with managing the relocating Area 2 and old Shopping Center tenants to DiliMall. The TWG will consist of UP officials, CBMS-RMCS officers, old SC stallholders, and USC officers.
Still, UP SCSAI President Eduardo Fernando lamented that their concerns over DiliMall remain unsettled following the dialogue with the OVPD.
“For almost seven years [since 2018], hanggang ngayon hindi pa rin namin makuha ang desisyon ng UP to be more considerate. Hindi lang sa amin, pati sa kabataan. Hindi dahil negosyante kami, pero ito na ‘yung nakasanayan namin. Kinasanayan naming kabuhayan para sa pagseserbisyo sa komunidad,” he said.
As the UP admin stands firm on its plans for DiliMall, Fernando urges the UP community to sustain its campaigns for affordable and accessible student services.
“[H]indi namin isinasara ang pinto ng samahan at naniniwala ako na buo kami bilang isa … Kaya sana wag tayong bibitaw at ipagpatuloy pa rin natin ang laban … Maging parte tayo ng kaayusan, hindi lamang ito yung idinidikta sa atin kundi nakaka-pagparticipate tayo,” said Fernando outside Quezon Hall after the dialogue.
