Pre-feasibility Study of the Iloilo Central Business District Revitalization Project

PRE-FEASIBILITY STUDYIloilo Downtown CBD Revitalization Project

Table of Contents

Overview

Background 4

Objectives & Scope 6

Development Strategy & Feasibility Considerations 8

The CBD Revitalization Components 10

The Investment Strategy & Approach to Financing 11

Guiding Principles for Longer Term Redevelopment

Activities 14

Section 1: Calle Real & Aldeguer Street Pedestrianization Project Implementation Plan Study

Section 2: Iloilo City Central Market Pre‐Feasibility Study

CITIES DEVELOPMENT INITIATIVE FOR ASIA (CDIA)

SUPPORT MIG, PHILIPPINES

Project No. 07.2029.2‐001.00

Iloilo Downtown CBD

Revitalization Project

Pre‐Feasibility Study

Prepared by:

CONSULTANTS FOR COMPREHENSIVE ENVIRONMENTAL PLANNING, INC.

August 2008

1856 Asuncion St., Santiago Village, Makati City

Tel : 895‐1812 ; Fax : 890‐2480E‐mail : [email protected]

(DRAFT)

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Background

This Pre‐Feasibility Study report focuses on the proposedredevelopment of the Iloilo City central business district, one of themajor components of the Cities Development for Asia (CDIA) Support toMetro Iloilo‐Guimaras, Philippines (Project No. 07.2029.2‐001.00) – orCDIA‐MIG for short. Based upon a request from the Metro Iloilo‐Guimaras Economic Development Council (MIGEDC), the subject projectis supported by the CDIA, which is a regional initiative of the AsianDevelopment Bank (ADB), the German Development Cooperation (GTZ)system, and the Swedish International Development CooperationAgency (SIDA). The CDIA is designed to support cities in ADB’sdeveloping member countries in strengthening the links between theirurban planning and infrastructure investment programs, and tofacilitate that identified projects will be subjected to pre‐feasibilitystudies, full‐blown feasibility studies, and will be financed andimplemented accordingly. It is within this framework that the CDIA‐MIGand the pre‐feasibility study of the Iloilo CBD revitalization project arebeing undertaken.

The pre‐feasibility study (PFS) aims to establish the prima facie case totake the Iloilo CBD revitalization project to feasibility level understandard agreement with a financing institution.The CBD project area isshown in Figure 1.

The PFS report tries to adhere to a standard acceptable to national andinternational financing institutions, with particular reference torequirements for possible ADB financing under the GoP/ADB PhilippinesBasic Urban Services Sector (PBUSS) project, including flagging potentialissues requiring in‐depth review in accordance with the various ADBsafeguards guidelines at the subsequent feasibility study stage.

Overview

Figure 1. Location of Project Area.

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Overview

Background (cont’d)

In the course of validating the details of the project duringthe PFS preparation period, two types of redevelopmentprojects emerged as essential for promoting the CBD projectobjectives. Within the context of the heritage,environmental and economic objectives of the CBD project,these redevelopment project types involve: 1) thepedestrianization of selected city thoroughfares; and 2) there‐design and construction of the old city market complex.These projects lend themselves to different approachesparticularly insofar as their financial viability is concerned.

Figure 2. Calle Real, Iloilo City.

Figure 4. Central Market, Iloilo City.

Figure 3. Aldeguer Street, Iloilo City.

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Objectives & Scope

The Iloilo CBD is the economic center of not only the entirecity but of the Metro Iloilo‐Guimaras region. Conceptually, itsrevitalization aims to transform the area into an exciting,interesting place where business want to remain and/orrelocate, and people want to work, shop, live, and have fun.Originally, the revitalization effort was envisioned toencompass only the pedestrianization of a stretch of Calle RealStreet. The pedestrianization process would include physicalimprovements on and along the street including buildingrepairs and rehabilitation, landscaping, building façade andsign programs, streetscape improvements, parking areas, etc.It also proposes the adoption and enforcement of appropriatezoning and related building ordinances, including heritageconservation, and the provision of efficient maintenance andsecurity services. Its underlying goal is to enhance the CBD’scommercial comparative advantage and strengthen itscontribution to the MIG region’s economic development.

This pedestrianization effort involves a number ofstakeholders with varying interests who interact with eachother in a process of planning and decision‐making. Theyinclude property owners, local businesses, merchants,heritage conservation advocates, business and civicassociations, hawkers, and local government itself. Theconcerns, interests and inputs of these stakeholders need tobe rationalized and orchestrated if the objectives ofrevitalization are to be achieved.

This require adequate funding an appropriate managementsystem, and a sound institutional structure.

Specifically, the objective of the Iloilo CBD project prefeasibility study is to identify and detail a neighborhoodthat would become a model for redevelopment projects inthe downtown area. In the consultations with the projectstakeholder groups including the City officials, the Iloilo CityHeritage Conservation Council (ICHCC) and the privatebusiness sector, the stakeholders however not only agreedwith the proposed Calle Real pedestrianization project butalso volunteered the redevelopment of additional nearbyareas as well. The following sites in Barangay Arsenal‐Advana were thus deemed suitable for redevelopmentunder this project.

1. Aldeguer Street, between Calle Real and Iznart Street.,2. Calle Real (JM Basa St.) between Aldeguer and Arroyo

Streets, and3. the old Central Market.

Overview

The measures proposed for the CBD redevelopment arethose that are perceived to be in a strategic position toencourage pedestrian shoppers in the CBD. For thepedestranization of Calle Real, the approach shall be acombination of strategic zoning policy enforcement, urbandesign promotion and infrastructure upgrading. For theCity Market block site, an “anchor building complex”redevelopment project to replace the present under‐utilized City market facility is being envisioned. Thepedestranization of Aldeguer Street will provide thesmooth connection between the enhanced commercialactivities expected in Calle Real and in the Central Market.Once in place, the projects are expected to encourage theestablishments in the CBD to extend their business hoursbeyond 6:00pm and to re‐attract the general public topatronize the CBD once again.

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Overview

Calle Real Pedestrian Boulevard

Aldeguer Street Market

City Market Redevelopment

Proposed Traffic Flow Route

Daytime Traffic Flow

Building Redevelopment

Figure 5. The Project Sites.

Figure 6. Vicinity of Project Sites.

Objectives & Scope (cont’d)

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Overview

Format of this Report

The detailed studies for the pedestrianization projects andthe Central Market projects are presented in the followingindependent sections of this report. The pedestranizationprojects are essentially City investments in the improvementof City infrastructure and the urban environment. Its returnon investment is qulitative in nature including the creation ofgoodwill. Hence for the Calle Real and Aldeguer Streetpedestrianization projects, the approach of this study is moreof the formulation of an Implementation Plan for them andherein presented in Section 1: Calle Real & ALdeguer StreetPedestrianization Project Implementation Plan Study.

The Central Market project idea meanwhile has the ability tobe a financially viable commercial project. For the CentralMarket project, thus, a Pre‐Feasibility Study consideringmarket forces at work was prepared and presented herein inSection 2: Iloilo City Central Market Pre‐Feasibility Study.

Figure X. Iloilo City Central Market Redevelopment Site.

Figure X. Calle Real Pedestrianization Site.

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Development Strategy

Compared to master planned development projects in openlands, a revitalization project for existing built‐up areas, suchas a CBD, needs to work with what is there. Clearly, theimplementation of a development strategy can only be asgood as the willingness of the players to support each other’sinputs. That being said, a possible model project in themiddle of the city with the highest degree of cooperationamong the stakeholders, if not with the least resistance,towards physical revitalization shall be pursued. An area ofspecial consideration is the role and treatment of thehawkers in the proposed project areas. Once accepted, theredevelopment pilot project(s) is expected to act as catalystand example for the rest of the CBD.

Most if not all of the property and business owners in theIloilo CBD are not familiar with the concept and practice ofurban redevelopment. Some of those who were involved inthe earlier work of the ICHCC in formulating the architecturalconservation guidelines for the heritage buildings within thedefined heritage zone have the misconception that urbanredevelopment is the same as heritage conservation.Because of this unfamiliarity of the true meaning of urbanredevelopment and of the benefits it can bring about,coupled with the extreme conservatism of the Ilonggobusinessmen, it is not surprisingly that there is a prevailingattitude of apathy, indifference, and even resistance, to theidea.

This situation has necessitated the formulation of a strategyto effect a change in attitudes among the property andbusiness owners in the CBD who are the most importantproject stakeholders. This strategy has been formulatedthrough a series of participatory focus group discussionsinvolving these stakeholders themselves.

It is founded on the fact that it is easier to change people’sattitudes if they can see for themselves the actual benefitsof the changes that are being proposed, instead of merelybeing told about these. It is also premised on the relativesuccess of small, incremental actions over large, complexundertakings. Based upon these considerations, therecommended phasing strategy for the Iloilo CBDrevitalization is as follows:

Overview

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Development Strategy (cont’d)

• Start with the Street Market on Aldeguer Street, whichdoes not require any capital investment on the part ofprivate property and business owners. What is needed isto organize the enterprises that would make up theStreet Market, and to mobilize the necessary supportservices from the concerned city departments.

• Follow up the Street Market exercise with the CentralMarket Development Project or, if there are encouragingsigns, to pursue the Project simultaneously with theStreet Market. In the case of the Central Market there isonly one property owner that needs to be convinced –the City Government. And because the City Governmentis actually the principal proponent of CBD revitalization,securing its approval and support is assured.

• Implement the pedestranization of Calle Real as a secondphase to the success of the Aldeguer Street Market. TheCity initiatives on the improvement of the street scenewill spur the cooperation and support of the privateproperty and business owners. This however does notdiscount the possibility of implementing this projectearlier, based on the interest of the private sector tosupport and take on this project.

Overview

Some similar projects that have succeeded in other parts ofthe world include pedestrianized streets in Moscow,Brisbane, Shanghai and Macau.

Figure 7. A street in Moscow.

Figure 8. A street in Macau..

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Overview

CBD Revitalization Components

Under this study, the CBD redevelopment effort for IloiloCity will consist of two types of projects. One project willinvolve the pedestrianization of a portion of two streets.The other project looks to the redevelopment of a City‐owned commercial site. Both projects are meant torevitalize economic activities in the City as well as toimprove the environment. The projects are describedbelow.

Pedestrianization Projects

Aldeguer Street Market. This is project plainly provides fora street bazaar which involves the closing down ofAldeguer Street, from Iznart Street to Calle Real, tovehicular traffic and setting up temporary stalls for avariety of retail items for a specified period in a week. Auseful model for this is the night market in Divisoria Streetin Cagayan de Oro City which operates from 6:00pm to3:00am on Friday and Saturday nights. In this case, the onlyinfrastructure investment of the city government was themulti‐colored streetlights which were installed in themiddle of Divisoria Street.

Figure 9. Image of the Night Market at Aldeguer Street

Calle Real (JM Basa), The Pedestrian Boulevard. The workinvolves the initiative of both the City and the buildingowners and shop owners. The City will commit to convertthe concerned stretch of Calle Real into one contiguous andsafe pedestrian promenade. This will include the provisionby the City measures for facilitating the sensitive supportiveactivities to the project. These elements impact on theprivate sector, as well as institutional service providers(relocation and training of sidewalk vendors, clearing ofunsightly commercial signages and overhead utility cables,rerouting of traffic, etc.). Based on the inputs of the City toencourage the renewed interest of the public, the buildingowners and shop owners are in turn expected to repairand/or restore their buildings, modernize their services andoverall make their places attractive commercial spaces forlocal shoppers as well as tourists. For the attention of theconcerned development funding agencies, it is felt thatprivate sector participation in the project can be catalyzed ifadvantageous development fund lending windows can bemade available to them under the project.

Central Market Redevelopment

This component of the Iloilo CBD Revitalization Projectentails: a) particularly for its façade, the restoration andrehabilitation of the historic two‐storey art‐deco CentralMarket building, b) the construction of three new buildingsfor office and residential units behind the existing historicCentral Market front building; c) the construction of aparking building; and d) the introduction of internal roadswithin the complex to improve not only the accessibilitywithin the project site but also to improve the trafficcondition in the surrounding neighborhood.

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Overview

The Players in the Project

Upon initial review of the identified projects, it is clear thata monolithic or “one‐size‐fits‐all” approach for thefinancing of the CBD Revitalization Project is not advisable.The different project types lend themselves to varioussources of financial schemes for its components.Accordingly, private sector sources of investment funds forthe project shall be explored to various extants not only tosuit the projects, but also to reduce the burden on the localgovernment. The design of the projects will accordinglycontain features that promote opportunities for businessand commerce and which are expected to interest privateinvestors.

The nature of the revitalization projects will require thecooperation of many concerned players. The success of theCBD revitalization project hinges on the participation of thepublic and private sectors in the project. The players andtheir roles are described as follows:

The City. The proposed approach is for the public sector toassume the role of a program director, doing what it needsto do so that the other major stakeholders may beencouraged to invest in the project.

An important tool to achieve cooperation will be a clearlyarticulated policy framework from government includingthe grant of a system of incentives (tax holidays, feediscounts, etc.). In turn, the expected increase in businessvolume in the plan area should ultimately impact on theCity income sources.

Retailers. More than the physical improvement of theirexisting businesses, improvement of merchandise mix,displays and other marketing strategies need to beemployed to generate the renewed interest of the buyingpublic.

Building owners. They are caught in a vicious cycle. The ageand physical condition of their buildings require more fundsfor upkeep and maintenance. But the very condition of thebuildings, lessen the desirability of high grade tenants tolocate there. As a result, rental rates are discountedresulting in, less funds for upkeep and maintenance.(Nominally the rental for ground floor space looks high butthe second and third floors are thrown‐in either for free ornominal rental bringing the average rate much lower). Theavailability of competitive and easy to access financing forbuilding redevelopment would be essential to the projectsuccess. Accessible venture capital and loans may be a wayto fast track the projects.

Financial Institutions. Projects (buildings, etc.) are normallyevaluated for financing on a stand‐alone basis. Banks andother financial institutions do not view these projects inthe context of an inter‐active whole picture. Financing ofentire districts has not been the modus of the industry.Both the local government and institutional proponentswill require financial support for their respective projects.This will be necessary for the main investment in physicaldevelopment.

New Investors. While the private‐public partnership (PPP)approach to development assumes that strategic policyconsiderations are set in place, financial incentives must beavailable to private proponents as they participate in theproject.

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Overview

The Players in the Project (cont’d)

Hawkers. The proliferation of sidewalk vendorscontributes to the continuing deterioration ofthe plan area. Properly managed, hawkerscontribute positively to the dynamism of a city.Training and availability of finance through theirassociations need to be addressed to upgradetheir economic condition.

The real economic gains for MIGEDC andspecifically Iloilo City will be sustained mainlyby the Business Sector (formal and informal)traditionally operating in the area. In their case,one way to induce them to participate in theredevelopment project is the provision of aspecial lending window for those who supportthe projects. In this regard, the prospects oftapping ODA funds (for example, the SpecialPurpose Vehicle of the Asian DevelopmentBank) and micro‐finance resources would be aninteresting addition to mainstream commercialfund sources if only to encourage early startsfor the development of projects. This lendingwindow will be welcome particularly for theurban poor livelihood requirement within theproject operations and which will be exploredfurther in the continuing focus groupdiscussions. The flowchart outlines the twocategories of activities and the roles andresponsibilities within each.

MICRO-LENDERLENDING AGENCY

ILOILO CITY

Lends

Repays

LEGEND:

CENTRAL BUSINESS DISTRICT REDEVELOPMENT PROJECTMETRO ILOILO-GUIMARAS ECONOMIC DEVELOPMENT COUNCIL (MIGEDC)

CALLE REAL (J.M. BASA) REDEVELOPMENT PROJECT

BUILDING OWNERSUpgrade structures or demolish and build new following Heritage

Council guidelines.

BUILDING TENANTSExperience increase in sales from the increased pedestrian traffic. Convey this to building owners.

STREET HAWKERSOrganized and trained

Undertakes traffic re-routing, city sidewalk improvement, pedestrianization, hawker’s stalls, street furniture, landscaping, provision of water, drainage & sewer lines. Cost shall be from City budget. Expected result: Increased pedestrian traffic, increased sales in plan area.

ASIAN DEVELOPMENT BANKSpecial purpose vehicle loan window as financing source 1. Building reconstruction fund; 2. Locators short to medium term operations financing: & 3. Conduit lending through NGO/Financial Institution for hawkers micro-finance.

MICRO-LENDERLENDING AGENCY

ILOILO CITY

Lends

Repays

LEGEND:

CENTRAL BUSINESS DISTRICT REDEVELOPMENT PROJECTMETRO ILOILO-GUIMARAS ECONOMIC DEVELOPMENT COUNCIL (MIGEDC)



BUILDING OWNERSUpgrade structures or demolish and build new following Heritage

Council guidelines.

BUILDING TENANTSExperience increase in sales from the increased pedestrian traffic. Convey this to building owners.

STREET HAWKERSOrganized and trained





Figure 10. CBD Redevelopment Project Implementation Plan.

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Overview

Institutional Considerations

Implementing the Iloilo CBD Revitalization Program is a complextask because of the many types of projects and the wide varietyof public and private stakeholders involved. Given the prevailingcircumstances in the Iloilo CBD, especially the absence of anyprevious experience with downtown redevelopment amongthese stakeholders, the government of Iloilo City will need totake the lead in getting the program off the ground. Clearly thecontinuing Revitalization Program for the entire CBD willultimately need the creation of a Downtown ProjectManagement Team.

The Private Activities, to be undertaken largely by privatebusiness partners such as the Iloilo Retailers Association (IRA),the Iloilo Chamber of Commerce and Industry (ICCI), and theIloilo Local Economic Development Council (ILED), include:

• Public outreach and inter‐departmental coordination• Public improvements and incentives• Redevelopment planning and developer recruitment• Project review and approval• Updating and enforcement of zoning and related

regulations• Traffic management and on‐street parking• Detailed planning and studies

• Area management and programming• Marketing• Special events and communications• Fundraising• Education and advocacy

In the formation of the team that will implement the strategy,such a Team should be equipped to ably handle required publicand private activities. The public activities to be undertakenprimarily by the City include:

The Downtown Project Management Team’s principalresponsibility is to coordinate the implementation of the CBDRevitalization Program’s key business development strategieswhich are as follows:

Product Readiness. The management of propertyimprovements and marketing tasks.

Customer Attraction and Expansion. Development of thebrand theme or identity, development and implementation ofmarketing activities, including production of regulardowntown promotions.

Business Retention and Expansion. Establishment andimplementation of a Business Development Program topromote opportunities, and provide assistance to existing aswell as prospective and start‐up businesses.

Business Attraction. The development and management of abusiness recruitment campaign to fill up downtown vacanciesand to assist in clustering retail establishments in the coredowntown area.

On a broader scale, the idea of a Redevelopment Authority forthe implementation of future special projects is worthwhileconsidering. This concept is further ventilated in the parallelstudy for Capability Building under this package of studies.

To ensure that both categories of activities are properlycoordinated and synchronized, representatives from the IloiloCity government and the private business partners will makeup the Downtown Project Management Team (DPMT).

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Overview

Guiding Principles for Longer Term Redevelopment Activities

As mentioned earlier in this Report, the selected initial CBDrevitalization projects are expected to serve as models andcatalyze similar projects in other sections of the Iloilo CBD.For the subsequent expansion, scaling up and longer termimplementation of the Iloilo CBD Revitalization Program, keyguidelines are proposed.

Implementing a successful downtown economic revitalizationprogram for Iloilo City will center on the CBD’s ability to offerproperty owners, businesses, residents, and visitors anenvironment different from and more inspiring than whatthey can find elsewhere. The following guiding principles aresuggested to be considered throughout the redevelopmentprocess:

Brand yourself. The Iloilo CBD must perceive itself as aproduct and market itself to compete with other nearbybusiness areas. Developing a brand theme or an identityupon which all other initiatives are based – eg, logo, urbandesign, signage, advertising, marketing collateral, website, etc.– is a key step in marketing the CBD. Its heritage buildings area valuable asset and foundation for this identity. The bottomline is that downtown Iloilo needs aggressive marketing toresidents, visitors and quality retailers promoting the IloiloCBD as a first choice for shopping and business location.

Looks count. Downtown Iloilo must recreate itself as avibrant, clean and safe business area in the eyes ofprospective businesses and target markets, implementingconsistent design standards/signage, promoting infilldevelopment and enhancing unattractive/obsolete structures.The improvement of traffic flow, provision of parking, andenhancement of the arcaded sidewalks will positively affectthe feeling of safety.

Cluster and focus. A critical component of retail developmentis the creation of a compact, unified area with complimentarybusinesses that benefit from each other’s sales, customersand markets. This can be achieved by clustering – creatingmutual advantages in terms of pedestrian flow and sharedmarkets between businesses. Successful clustering isdependent on having the appropriate mix of businesses thatgenerate market synergies and an uninterrupted grouping ofretail businesses that allow customers to and through theentire area. Educating business and property owners aboutthe importance of using this business development tool iscritical. Iloilo City should also consider zoning and regulatorymeasures to encourage continuous retail frontage anddiscourage office users on the ground floors in the coredowntown blocks.

Clear location strategy. Related to the concept of clustering isthe need to follow a few basic rules‐of‐thumb regardingsuccessful business location in downtowns. These include:

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Overview

Walkable core area. To overcome existing negative perceptionsof downtown Iloilo, creating a safe, pleasant and convenientatmosphere for pedestrians is a priority redevelopmentinitiative. The relatively large scale of downtown Iloilo makes itimportant to encourage pedestrian activity initially in aparticular core area (such as the stretch of Calle Real fromAldeguer Street to Arsenal Street). Over time, this area canspread out to include more blocks in all directions. Thisguideline is directly linked to branding and clustering andspeaks to the need to call out in all possible ways Calle Real asthe retail focus, i.e., this is “the place” to shop in downtownIloilo.

Strive to be different. While shopping center developers andnational retailers strive to appeal to a wide market, they alsomimic what can be found in traditional shopping areas.Downtown Iloilo’s historic character combined with its uniquemerchants sets it apart from nearby shopping malls. One‐of‐a‐kind unique specialty stores and restaurants initially should bethe focus of business recruitment efforts. This does notpreclude encouraging existing successful operations in thecountry to open additional locations.

Increase housing opportunities. A critical strategy insupport of retail vitality in the downtown core is toencourage the addition of a substantial number of housingunits, especially affordable housing. Housing willcontribute to demand for additional shops, services andhome‐oriented products and food facilities. Housing in theCBD will also provide the average downtown officeemployees with the convenience and savings of living neartheir place of work.

Know what you have to offer. One of the best strategiesfor recruiting business prospects and developers is to beable to provide an inventory of available real estate, andbetter yet, be in a position to bring key properties to thetable. Redevelopment opportunity properties should beranked according to their potential for redevelopment orlocational, importance, categorized as a short‐term orlong‐term potential initiative and marketed via collateralspecification sheets.

Get the word out. Working with the local media tohighlight success stories and monitor new business andconstruction/redevelopment through the Iloilo downtownwill help convince target markets that the Iloilo CBD is anattractive and unique place to live, work, and play. Othereffective forms of communication include newsletters,websites that keep potential locators up‐to‐date onspecial events, and organizing a speakers’ bureau.Maintaining strong lines of communication with arearesidents and businesses will also be important.

• scatter restaurants to help generate customer traffic inhotspots throughout the area

• build on key anchors or traffic generators, such as theCentral Market, to attract complementary businessesnearby

• group stores appealing to the same sub‐market and storeswith competitive merchandise

• use secondary locations for personal and professionalservices – side streets or upper storeys

• intersperse stores with complimentary goods, eg, shoes,apparel, jewelry

Guiding Principles for Longer Term Redevelopment Activities (cont’d)

IMPLEMENTATION PLAN STUDYCalle Real & Aldeguer Street Pedestrianization Project

Table of Contents

Introduction 19

Technical Description of the Project

Existing Situation, Objectives & Proposed Development

Process 20

Heritage Features & Development Components 21

Work Component 22

Master Plan 23

Program Implementation Budget 26

Financial Viability 27

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Introduction

Iloilo’s CBD is typical of old business districts in the country. Itis plagued by outmoded infrastructure, congestion, pollutionand flooding. Due to the situation, most of its buildings andneighborhood amenities are in decay. As such, the moremodern developments gravitate to the suburbs. To attractthe market, these developments are usually built out of ascale that allows them to operate in self‐contained fashion.

The City of Iloilo realizes however that its CBD is a naturalresource in itself. Briefly, it has the locational advantage ofbeing close to the pier and public offices. It possesses theunique Heritage commercial buildings of the city that reflectsits history and is sought by tourists. Finally, despite itsinconveniences, it is home to a significant population that isthe desired market of commercial projects.

For these reasons, a bold project to make the CBD a vibrantand competitive area is deemed by the City. To this end, arevitalization strategy and plan for the area is solicited. Thisstudy deals with the initial phase effort, the pedestrianizationof Calle Real, for the City to consider and address. At the endof the exercise, it is hoped that not only will business flourishonce more in the CBD, but there will be an image of the Citythat will reflect its character and history and which its citizenswill be proud of.

Figure 1. Hawkers along Calle Real.

Figure 2. Tight pedestrian traffic along sidewalks.

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The Existing Situation and the Vision

The main area for pedestrianization development is a stretchof Calle Real Street starting from Ledesma St./Arroyo Streets(one end of Calle Real) up to Aldeguer Street (which is theother street slated for pedestrianization). This stretch isroughly 212 meters long with a Street carriageway width ofabout 16 meters. In the middle of the street is a narrowfenced island strip with standard street lamps distributedalong it. The middle of the stretch is bisected by ArsenalStreet and an alley that connects to Iznart Street. At present,public fares together with private vehicles ply the stretch.

Compared to the busy Calle Real, Aldeguer is the smaller sidestreet that is not as congested. The Aldeguer Street project isabout 200 meters in length bounded by Calle Real and IznartStreet. The pedestrianization of Aldeguer will requirecomparatively less effort and facilities since it is meant to beclosed to traffic only for given periods of time. Under theurbanization strategy of the City, the Aldeguer project is aStreet Market project that will be a venue for outdoorbazaars on certain hours or days of the week.


The Calle Real project will be the main pedestrianboulevard while Aldeguer Street will play out its dual roleas a pedestrian route only at given times. Aldeguer Streetwill be closed to traffic on appointed hours (Sundays ornights as the case may be). This flexible marketplace willrequire only the emplacement of traffic bollards and theset up of temporary stalls that will provide the opportunityfor the City’s informal economy to work their trade.

The basic objective of the pedestrianization effort is tobring the pace of passers‐by on the street to a level whereit is conducive for commerce especially retail sales. Hence,the process call for a comfortable and safe setting forpedestrians. For Calle Real and Aldeguer Street this willentail the provision of appropriate paving work, upgrade ofutility features, provision of street furniture. In addition,the enactment and application of specialized urban designzoning policies as well as the implementation of supportiveprograms and projects on environmental care, securitymeasures, traffic reroute and effective incentives (toencourage concerned private sector interests to participatein the project) will be necessary. The Calle Real project willbe the main pedestrian boulevard while Aldeguer Streetwill be comparatively open to traffic as it plays out its dualrole as a pedestrian route only at given times. AldeguerStreet will be closed to traffic on appointed hours (Sundaysor nights as the case may be). This flexible Aldeguer Streetmarketplace will require only the emplacement oftemporary stalls that will provide the opportunity for theCity’s informal economy to work their trade.

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Heritage Features & Development Components

The stretch of Calle Real and Aldeguer Street slated fordevelopment has a high concentration of heritage buildingsin the CBD. Overall, twelve turn‐of‐the‐19thcentury officebuildings in Calle Real and five along Aldeguer Street havebeen identified there by Iloilo City’s Heritage Conservationgroup. See Figures 4 and 8 for a list of these heritagebuildings. Today these buildings are mostly in a state ofdisrepair where only the ground level is commercialized.

The upper floors of most of these buildings are subject onlyto limited use due to safety and utility limitationconsiderations. While the physical development of the streetby the City will be the direct result of the pedestrianizationproject, the restoration and improvement of the privatesector‐owned buildings along these streets is theresponsibility of the private sector who the City wishes toinfluence and enjoin in the City revitalization objectives. Thepresence of these Heritage treasures amidst the project siteare what will differentiate the CBD environment from thecompeting new mall developments around that will attractthe tourists.


Figure 3. A heritage building at Calle Real.

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Work Component

Essentially, the work expected from the public sector forthis project are as follows:


• Rehabilitation and improvement of the arcade and citysidewalks;

• Demolition of Calle Real’s center island and removal ofstreet lamps;

• Excavation and construction of service canal ways onthe street for underground utilities;

• Provision of public information and toilet stations,vendors selling station facilities, sets of street furniture,street lamps and signages as required.

In the case of Aldeguer Street, it will not require as muchwork for utility upgrade and the provision of streetfurniture since the commercial activities there is expectedlylight in nature with portable stalls only.

In addition there are parallel official activities that will benecessary if the pedestrianization program is to succeed.These activities are inherent for the City to do and are thefollowing:

• Traffic reroute plan and designation of accessalternatives;

• Removal of sidewalk vendors who clog the arcades;• Removal of undesirable billboards and illegal signages

on private buildings;• Enactment of a City Urban Policy to enforce and effect

the pedestrianization concept inclusive of incentives anddisincentives to the concerned private sector forupgrading their business assets and operations in linewith project objectives.

• Information and education campaign (IEC) and eventasmanagement for the area.

The following pages illustrate the physical plan and detailssuggested for the pedestrianization projects.

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Master Plan

Calle Real

Figure 4. Pedestrianization Plan.

Figure 5. View of Left Side of Calle Real.

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Master Plan (cont’d)

Calle Real

Figure 7. Image of a Pedestrianized Calle Real.

Figure 6. Existing Condition.

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Master Plan (cont’d)

Aldeguer Street

Figure 8. Pedestrianization Plan.

Figure 9. Existing Condition.

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Program Implementation Budget

Based on the physical plans, an indicative budgetwas prepared. The direct cost for the Calle Realproject is shown in Table 1.

The budgets for support activities and programssuch as vendor relocation, signage dismantlingand traffic rerouting are additional costs andwhich will be estimated by the City. This can beCity counterpart contribution if ever this isrequired under a special loan or a joint venturearrangement for the development of the project.

For Aldeguer Street project, the substantivecosts will be more on continuing streetmaintenance and clean‐up when the streetreverts back for vehicular use after eachscheduled event.

The summary of the indicative budget for theCalle Real project is as follows:

CALLE REAL No. of

units Area Total

Area Cost/sqm Total Cost

Items of Cost Street Arcade 1 645 645 15,000 9,675,000Street Sidewalk 1 823 823 15,000 12,345,000Kiosk (large selling station)

19 12 228 15,000 3,420,000

Stall (Small selling station)

22 6 132 15,000 1,980,000

Security and Tourist Information Station

1 12 12 17,500 210,000

Streetlamps 20 1 20 40,000 800,000Portalets 4 4 16 30,000 480,000Roofed Rest Stations

4 30 120 15,000 1,800,000

30,710,000 Landscaping (potted greenery) 1 1 1 300,000 300,000Electrical supply 1 1 1 1,000,000 1,000,000Water supply 1 1 1 1,000,000 1,000,000Waste Water Disposal Systems 1 1 1 1,000,000 1,000,000Garbage receptacles 1 1 1 50,000 50,000Railings and chains 20 1 20 2,000 40,000Bollards 60 1 60 5,000 300,000 3,690,000 TOTAL PROJECT

COST 34,400,000

* Total cost for electrical supply is PhP 2 million if inclusive of underground utilities.

Table 1. Calle Real Budget Summary.

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Financial Viability

The most important cost item for the redevelopment of thedistrict would be in the upgrading of still serviceablebuildings and the demolition and erection of newstructures along the heritage guidelines. These activities,which will be undertaken by the building owners, willusually start to come into play at a later stage of theprocess after the local government has already invested inthe project. At that stage, the commitment of governmentto the inner city redevelopment process, budgets havebeen expended and results of the pedestrianization arealready beginning to be felt. On the part of government, itis recommended that the cost of the project as laid out inthe program budget be taken from the city budget.

The first sector to feel the impact of the program will bethe street hawkers. They will need to be organized,provided with small loans and enticed to move from theirpresent locations to the kiosks and arcades to be providedby the program. We recommend that this activity beundertaken via a non government organization (ex: Taytaysa Kauswagan). Financial support will have to be in twoforms, some grant arrangement or a comfortable spreadon interest yield and a financing pool will have to be set up.

The second sector which will feel the impact of the programwill be locators engaged in retail activities along the sectionof the project area. As more pedestrians are drawn to thearea, there should be incremental increases in sales volume.Depending on the type of clients who will now frequent thearea, there will be changes in the merchandise mix on thepart of the retailer. The level of financing requirement andmay be difficult to quantify. But inventory loans for retoolingto meet the new and changing market will have to beconsidered.

The last group to react will be the building owners. First,lead projects will have to be identified for upgrading andnew construction. A suggestion by ILED to attract a botiquehotel in the area may be a major catalyst for theredevelopment effort. Medium to long term financing atcompetitive rates would be a strong incentive to the buildingowners. Considering that only short to medium termfinancing is currently available at commercial rates, there islittle incentive to upgrade or consider new construction.However, potentially, 10 buildings or a potential 100,000square meters of space could be financed over a reasonabletime frame. At current values of construction (PhP 30,000/square meter) this would represent a potential financinglevel of PhP 3 billion.

A system of flowing low cost, long term funds through thecommercial banking system from the multilateralinstitutions will have to be set up for program support.

PRE-FEASIBILITY STUDYIloilo City Central Market

Table of Contents


Existing Situation 30Proposed Land Use 31Architectural Design & Building Specifications 32

Master Plan & Operating Strategy 33

Financial Viability 38

Conclusion & Next Steps 40

Annexes 41

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Existing Situation

The site is a market complex owned by Iloilo City. It consistsof a Heritage building at the façade side and an industrialtype market complex (behind the Heritage building)consisting of interconnected shops and stalls despite thevaried independent structures that house them. The site isless than 1.4 hectares in total size and which 5‐sided shape isbounded by 4 City streets (Iznart, Aldeguer, Rizal and GuancoStreets).

Figure 2. Site Limits.Figure 1. Vicinity Map.

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Proposed Land Use

In line with the CBD redevelopment thrust of the City, therenovation of this City asset is expected to promotebusiness in the CBD. Considering the high value of the sitewhich is located in the center of the City, a higher densityarrangement is proposed for its development. Accordingly,the land use deemed appropriate for the project isessentially commercial in nature.

Specifically, the land use components would be:

a) Commercial arcade for the existing Heritage building;b) Office/residential towers and a parking building linked by

a podium for the main area behind the Heritagebuilding;

c) Wet market and dry goods area under the podium;d) Open public promenade adjacent to the Heritage

building; ande) Miscellaneous commercial stall strip along Aldeguer and

Guanco strips.

Figure 3. View along Rizal Street.

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Architectural Design & Building Specifications

On the whole, the project shall be modern with a token Heritagetheme. The existing Heritage building shall be restored whilebeing equipped with the latest facilities under an adaptivecommercial reuse approach. Effectively, the face of thedevelopment shall be the restored Heritage building and whichuse shall be integrated with the functions of the other buildingsin the development.

The other buildings shall be modern with basic form and color asmuch as possible so that it will possess a skyline and surfacesthat do not distract from the theme of the Heritage façade atthe front. The proposed new building towers and the parkingbuilding in the site shall be medium rise (maximum 6 storeys) inheight that considers current market demand and to conform ina way with the dominant city skyline form in the CBD.

The buildings shall be light structures as much as possible toeconomize on the cost of foundations and to speed up theconstruction. Materials shall be durable low maintenancematerials with design and finishing details that are modern andcompetitive with the specifications of new commercial areastoday.

Whenever possible Green Architecture discipline shall be appliedto the building design so that natural light, natural ventilation,access innovations (ramps, shaded paths, magnets), publicvisibility features (that promote product displays as well as areasecurity) and promenade greeneries which become efficientcomponents of the project design and which makes itsustainable.

Strategic areas on the floor of the podium in particular shallbe finished in glass blocks if only to permit the wet marketbelow to avail of natural lighting during the daytime.

The design of the buildings and other built up structureshall provide for and integrate all necessary technicalsupport systems (mechanical equipment, electricalequipment, telecommunication equipment, securitysystems, etc.) including backup utilities (generator, pumps,fire protection, etc.). The rentable/saleable units withineach building shall however be turned over bare to therespective tenants or buyer owners.

The area beneath the podium shall be the wet market areawhich will be provided with individual steel framed stallsfor use by the various vendors to be accredited. The wetmarket paving shall be low maintenance in design completewith effective drain slopes and grates, collector pipes, andmechanical ventilators and water treatment receptacle toreceive and sanitize wet market effluence and odor.

The open promenade behind the Heritage building and thedriveway system which are also on the ground level shall beappropriately paved and provided with traffic bolasters,plaza lights, public art and utility tapping points (for thegeneral public and the commercial stall holders of comfortstations respectively) as required. For each center ofactivity within the complex and for the buildings, adequateand modern public toilets shall also be provided in strategicareas.

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Master Plan & Operating Strategy

The mixed‐use operations in the project complex, seeks toprovide the situation that will make the Iloilo CentralMarket project a destination place. At ground level, thesalient commercial activities shall involve arcade boutiques(within the Heritage Building, the shops around thePromenade and the shops along Aldeguer and GuancoStreets), wet and dry goods section (under the Podium),and the vendor services that will be accredited to to stay inthe Promenade area.

At ground level as well will be the access stair to thePodium level, parking ramps, the elevator lobbies of thetowers, the driveway system within the complex and theutilities for water treatment and sump equipment.

On the Podium level will be the second floor of the towersand the Parking Building which will be commercial innature. The accredited vendor stalls of vendors which willalso be doing lighter commercial activities. The upperfloors of the towers shall be either residential or officefacility in nature. The middle two floors of the parkingbuilding shall be parking while its upper two floors shall befor large office space requirement such as call center andBPO operations.

Please see the following figures for the detailed graphicidea of the Central Market building complex concept.

Figure 5. Wet market.

Figure 4. View of the promenade from the podium.

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Master Plan & Operating Strategy (cont’d)

Typical Building Plans

Figure 6. Ground Level Plan. Figure 7. Podium Level Plan. Figure 8. 3rd – 4th Level Plan. Figure 9. 5th – 6th Level Plan.

Figure 10. Diagrammatic Section.

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Typical Building Plans

Figure 11. Aerial Perspective.

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Typical Perspective Drawings

Figure 13. Outdoor Commercial Activities at Podium Level.

Figure 12. New Arcaded Shops.

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PARKING REQUIREMENT & COMPLIANCE

Component Required Compliance

Ground Floor Parking 176

Ground Floor Development 67

Heritage Market Building 19

Bldg 1,2,3 (G/F and Podium) 24

Podium 28

Sub‐Total 138

Parking Building

Ground Floor

Podium Floor 8

3rd‐4th Floor 64

5th‐6th Floor 27

Bldg. No. 1 ‐ Office/Residential 18



Sub‐Total 107 240

Curbside Spaces 40

GRAND TOTAL 246 280

EXCESS PARKING SLOTS 36


A key consideration in the allocation of saleable area is theissue of parking space. The project design considered theparking requirement of the National Building Code forcommercial projects. The project provides internal parkingspaces in two floors of one of the buildings and part of thewet market area. Obviously, more spaces for the wetmarket would be possible if the traditional curbside parkingcurrently accepted in the City would be counted as part ofthe parking spaces for the project.

The resulting design will generate 240 parking slots withinthe building premises while keeping the 40 curbside slotsbringing the total to 280 parking spaces. Against arequirement of 246 slots, the design shall have a remaining36 spaces on curbside for public parking.

However, should it be decided that there should be morewet market stalls, parking allocated to the ground floor willhave to be sacrificed.

Table 1. Parking Requirement & Compliance.


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Financial Viability

The project design calls for the upgrading of the Heritagebuilding into specialty retail shops, creating an openpromenade within the central core of the property,providing sufficient space for the continued operation ofthe wet and dry markets, construction of three mediumrise towers and a parking cum commercial mixed usespaces. The total floor area to be generated by the projectis estimated at 41,200 square meters. Net useable space of24,650 square meters is expected to be generated.Common areas and open space is projected at 16,150square meters. The development is quite generous in theopen space allocation at a ratio of 60:40 on the commercialspaces and 75:25 for the buildings.

Despite the amount of open space allocated for the project,the financial picture shows the likelihood of positiverevenue streams. Should more space be useable, thefinancial picture for the project will improve even further.

Table 2. Summary of Financial Highlights.

SUMMARY OF FINANCIAL HIGHLIGHTS

E‐Vat 142,168,405

Net Sales 938,311,470

Total Construction Cost 724,451,000

Net Profit Before Interest & Taxes 168,268,926

Interest 26,000,000

Net Before Taxes 142,268,926

Land Lease Payments 45,591,544

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Financial Viability

For purposes of this study, the following major assumptionswere adopted:

1. The land of the Central market is not for sale. The Cityshall issue a contract to the winning bidder for longterm lease of 50 years.

2. The annual lease rate is set at four (4%) percent ofcurrent zonal valuation of P18,000 per square meter.

3. The annual lease payments were taken over an eightyear stream and brought to the present value at afifteen (15%) rate.

4. Lease payments beyond the development period willbe billed to the unit buyers and tucked into theircommon area dues. Without escalation this would bean additional P4.00 per square meter per month. Thiswould be continuing lease income for the City of P11million per year over the life of the lease. Escalationcan be built into the sales contract of the developer tothe unit buyer.

5. All useable space would be for sale under acondominium certificate of title including market stallspaces and parking slots.

6. All current market stall renters will be accommodatedin the new facility. They will have to purchase theleasehold rights over the new stalls.

7. The development program for the entire project iswithin an eight (8) year time frame for sales,construction and turnover.

8. Projected selling prices are lower than Metro Manilalevels.

9. Construction costs are based on Metro Manila data.

10. Two access roads are to be built for the project. Firstwill be a centrally located driveway for customerloading and unloading. A second will access the rampto the parking building.

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Conclusion & Next Steps

The Iloilo City business groups consulted for theformulation of the Central Business District Re‐development Project were almost unanimous in theirobservation that the City must take the first steps in theprogram is the private sector is to follow suit. Clear signalsmust be sent out by the City that it means business and isconcerned about the deteriorating state (physical andeconomic) of the CBD. They were also in agreement thatthe Central Market Project would be the sounding bell forthe start of the process. In fact, the project was pursuedvigorously by the business sector as cornerstone for theredevelopment effort.

Table 14. Consultation with Central Market Stakeholders.

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Annexes

Income Statement

CENTRAL MARKET REDEVELOPMENT

PROJECTED INCOME STATEMENT SALES ESTIMATE

SALESGround Floor Development 207,565,050Ground Floor Parking 87,900,000Heritage Market Building 60,336,000Bldgs 1,2,3 (G/F and Podium) 75,363,750Podium 85,123,500Parking Building 183,211,250Bldg. No. 1 ‐ Office/Residential Block 86,568,750Bldg. No. 2 ‐ Office/Residential Block 115,425,000Bldg. No. 3 ‐ Office/Residential Block 141,075,000

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Total Sales 1,042,568,300

E‐Vat ‐ 12% 142,168,405GROSS SALES 1,184,736,705

Less: E‐Vat ‐ 12% 142,168,405 Selling Expense ‐ 10% 104,256,830

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Total Deductions 246,425,235

NET SALES 938,311,470CONSTRUCTION COST

Demolition & Haul Out 6,220,000Ground Floor Development 121,129,000Heritage Market Building 8,799,000Bldgs 1,2,3 (G/F and Podium) 63,140,000Podium 77,385,000Parking Building 244,198,000Bldg. No. 1 ‐ Office/Residential Block 63,180,000Bldg. No. 2 ‐ Office/Residential Block 63,180,000Bldg. No. 3 ‐ Office/Residential Block 77,220,000

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐Total Constuction Cost 724,451,000

NET PROFIT BEFORE LAND LEASE 213,860,470Land Lease Payments (Total Building Footprints) 45,591,544

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐NET PROFIT BEFORE INTEREST & TAXES 168,268,926INTEREST 26,000,000

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐NET BEFORE TAXES 142,268,926INCOME TAX 49,794,124

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐NET PROFIT AFTER TAX 92,474,802

ILOILO CENTRAL BUSINESS DISTRICT REHABILITATIONMETRO ILOILO ‐ GUIMARAS ECONOMIC DEVELOPMENT COUNCIL

Annex 1. Income Statement.

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Annexes

Schedule of Sales

METRO ILOILO ‐ GUIMARAS ECONOMIC DEVELOPMENT COUNCILILOILO CENTRAL BUSINESS DISTRICT REHABILITATIONCENTRAL MARKET REDEVELOPMENT

SALESNet Floor Area

Unit Size No of Units Selling in

SqMUnit Sales Total Sales

Ground Floor Development 5,391 38,500 207,565,050Ground Floor Parking 2,198 40,000 87,900,000Heritage Market Building 1,508 40,000 60,336,000Podium 2,211 38,500 85,123,500Bldgs 1,2,3 (G/F and Podium) 1,958 38,500 75,363,750Parking Building 2 183,211,250

Podium Space 608 38,500 23,388,750Parking Slots (2F‐3F) 800 40,000 32,000,000Office Residential (4F‐5F) 2,691 47,500 127,822,500

Bldg. No. 1 ‐ Office/Residential Block 1,823 47,500 86,568,750Bldg. No. 2 ‐ Office/Residential Block 2,430 47,500 115,425,000Bldg. No. 3 ‐ Office/Residential Block 2,970 47,500 141,075,000

‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐

Total Sales 1,042,568,300

Annex 2. Schedule of Sales.

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Annexes

Financial Plan


FINANCIAL PLAN % Sold Year 1 % Sold Year 2 % Sold Year 3Construction Cost

Ground Floor Development 60% 72,677,400 40% 48,451,600 Heritage Market Building 60% 5,279,400 40% 3,519,600 Bldgs 1,2,3 (G/F and Podium) 60% 37,884,000 40% 25,256,000 Podium 30% 23,215,500 40% 30,954,000 30% 23,215,500 Parking Building Bldg. No. 1 ‐ Office/Residential Block 30% 18,954,000 30% 18,954,000 30% 18,954,000 Bldg. No. 2 ‐ Office/Residential Block 30% 18,954,000 Bldg. No. 3 ‐ Office/Residential Block

Sub‐Total Construction Cost 158,010,300 127,135,200 61,123,500 Marketing 11,411,507 14,886,039 21,146,015 Leasehold Advance & Annual Payments 43,833,600 Total Project Outflows 213,255,407 142,021,239 82,269,515

Less Pre‐Selling InflowsGround Floor Development 30% 62,269,515 30% 62,269,515 40% 83,026,020 Heritage Market Building 20% 12,067,200 30% 18,100,800 30% 18,100,800 Bldgs 1,2,3 (G/F and Podium) 30% 22,609,125 30% 22,609,125 40% 30,145,500 Podium 10% 8,512,350 20% 17,024,700 20% 17,024,700 Parking Building Bldg. No. 1 ‐ Office/Residential Block 10% 8,656,875 20% 17,313,750 30% 25,970,625 Bldg. No. 2 ‐ Office/Residential Block 10% 11,542,500 20% 23,085,000 Bldg. No. 3 ‐ Office/Residential Block 10% 14,107,500

Total Pre‐Selling Inflows 114,115,065 148,860,390 211,460,145

NET PROJECT REQUIREMENT (99,140,342) 6,839,151 129,190,631

Equity Inflow 23% 25,000,000 ‐ ‐ Loan Drawdown 77% 85,000,000 5,000,000 ‐ Cummulative Balance 10,859,659 9,198,810 129,889,440 Interest 8,500,000 8,500,000 9,000,000 Loan Repayment ‐ ‐ 90,000,000 Ending Loan Balance 85,000,000 90,000,000 ‐

Cash Balance 2,359,659 698,810 30,889,440 Annex 3. Financial Plan.

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Financial Plan


FINANCIAL PLAN % Sold Year 4 % Sold Year 5 % Sold Year 6Construction Cost

Ground Floor DevelopmentHeritage Market Building

‐ PodiumParking Building 30% 73,259,400 30% 73,259,400 Bldg. No. 1 ‐ Office/Residential Block 10% 6,318,000 Bldg. No. 2 ‐ Office/Residential Block 30% 18,954,000 30% 18,954,000 10% 6,318,000 Bldg. No. 3 ‐ Office/Residential Block 30% 23,166,000 30% 23,166,000

Sub‐Total Construction Cost 25,272,000 115,379,400 102,743,400 Marketing 12,453,913 12,228,070 10,626,338 Leasehold Advance & Annual PaymentsTotal Project Outflows 37,725,913 127,607,470 113,369,738

Less Pre‐Selling InflowsGround Floor DevelopmentHeritage Market Building 20% 12,067,200

‐ Podium 30% 25,537,050 20% 17,024,700 Parking Building 10% 18,321,125 20% 36,642,250 30% 54,963,375 Bldg. No. 1 ‐ Office/Residential Block 20% 17,313,750 20% 17,313,750 Bldg. No. 2 ‐ Office/Residential Block 20% 23,085,000 20% 23,085,000 20% 23,085,000 Bldg. No. 3 ‐ Office/Residential Block 20% 28,215,000 20% 28,215,000 20% 28,215,000


NET PROJECT REQUIREMENT 86,813,213 (5,326,770) (7,106,363)

Equity Inflow ‐ ‐ Loan DrawdownCummulative Balance 117,702,653 112,375,883 105,269,520 Interest ‐ ‐ ‐ Loan Repayment ‐ ‐ ‐ Ending Loan Balance ‐ ‐ ‐

Cash Balance 117,702,653 112,375,883 105,269,520 Annex 4. Financial Plan.

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Annexes

Financial Plan


FINANCIAL PLAN % Sold Year 7 % Sold Year 8 % Total Sales ValueConstruction Cost

Ground Floor Development 100% 121,129,000 Heritage Market Building 100% 8,799,000

‐ Podium 100% 77,385,000 Parking Building 30% 73,259,400 10% 24,419,800 100% 244,198,000 Bldg. No. 1 ‐ Office/Residential Block 100% 63,180,000 Bldg. No. 2 ‐ Office/Residential Block 100% 63,180,000 Bldg. No. 3 ‐ Office/Residential Block 30% 23,166,000 10% 7,722,000 100% 77,220,000

Sub‐Total Construction Cost 96,425,400 32,141,800 718,231,000 Marketing 7,639,975 5,074,975 87,930,455 Leasehold Advance & Annual Payments 43,833,600 Total Project Outflows 104,065,375 37,216,775 849,995,055

Less Pre‐Selling InflowsGround Floor Development 100% 207,565,050 Heritage Market Building 100% 60,336,000

‐ Podium 100% 85,123,500 Parking Building 20% 36,642,250 20% 36,642,250 100% 183,211,250 Bldg. No. 1 ‐ Office/Residential Block 100% 86,568,750 Bldg. No. 2 ‐ Office/Residential Block 10% 11,542,500 100% 115,425,000 Bldg. No. 3 ‐ Office/Residential Block 20% 28,215,000 10% 14,107,500 100% 141,075,000


NET PROJECT REQUIREMENT (27,665,625) 13,532,975

Equity InflowLoan DrawdownCummulative Balance 77,603,895 91,136,870 Interest ‐ ‐ 26,000,000 Loan Repayment ‐ ‐ Ending Loan Balance ‐ ‐

Cash Balance 77,603,895 91,136,870 Annex 5. Financial Plan.

CDIA-MIG Team

Team Leader: DR. NATHANIEL VON EINSIEDEL

PRE‐FEASIBILITYSub‐Team Leader:

MR. LEON MAYO

Investment Planning Specialist: MR. ELPIDIO DAMASOCosting Engineer: MS. MIRIAM TAMAYO

Architectural Designer: MS. DEANNA SANTOS MR. NICASIO ESPINA MR. JULIUS GARRIDO MS. JAYCEE GOPEZ MR. WILFREDO SY

INVESTMENT PLANNINGSub‐Team Leader:

MR. JOSE ANTONIO LEAGUE

Business Development Specialist:

MS. ELIRINE SIWA

CAPACITY BUILDINGSub‐Team Leader:

MS. VICTORIA DE VILLA

Local Development Specialist: MS. RASHEL PARDO

LOCAL COUNTERPARTBusiness Development Advisor:

MR. ANGEL DE LEON

Pre-feasibility Study of the Iloilo Central Business District Revitalization Project

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Transcript of Pre-feasibility Study of the Iloilo Central Business District Revitalization Project