Baguio LGU assumes management of Maharlika Livelihood Complex after being under HSDC for 50 years

Baguio City, Philippines - The city government of Baguio finally took back control of the Maharlika Livelihood Complex, a well-known shopping and business center in the heart of the city, after it was run by Human Settlements Development Corporation (HSDC) for 50 years. 

A formal turnover ceremony was held on Tuesday, May 28, in the complex’s lobby, led by Mayor Benjamin Magalong, the officials of the HSDC, incoming Congressman Mauricio Domogan, and Vice Mayor Faustino, among other city officials. 

The HSDC is a government agency attached to the Department of Public Works and Housing (DPWH), which has used the building for 5 decades. The agency later transferred to the Department of Agriculture (DA). 

HSDC’s use of the building

In 1972, the city allowed MAR-BAY & CO. Incorporated to develop the area after the old Baguio Stone Market was destroyed by fire, which was eventually demolished in 1970. The Baguio City Council leased the property to the corporation, which was given the right to build and manage the Maharlika Livelihood Center (now Maharlika Livelihood Complex) for 25 years. 

The center opened in 1982 under then-First Lady Imelda Marcos, who served as human settlements minister. In 1975, the CLGU  extended the lease period of the center to 50 years, with the lease set to expire on April 27, 2025.

In 1980, the city council acknowledged the transfer of MAR-BAY's rights to the complex to HSDC, including additional developments built by corporation on the property, such as the MAR-BAY Baguio Plaza Hotel and MAR-BAY shopping center. 

Although former President Gloria Macapagal Arroyo ordered the return of Maharlika to the city government in 2009, the HSDC kept managing it, and it was only in 2019 that current Mayor Benjamin Magalong started talks to take it back. 

The lease officially ended on April 27 this year, allowing the city to finally take over the management of the building. 

What’s next for Maharlika after it is finally under the CLGU’s management? 

As reported by the Baguio City Public Information Office, Mayor Magalong said that the city plans to improve and modernize the complex further. The mayor wants it to become a model of sustainable and inclusive development, where the residents and visitors alike can benefit more. 

One of the residents' concerns in the building is that the escalators in the complex are not working, and they are hoping that with the management now under the CLGU, the problem will be addressed as soon as possible. 

“The escalators in Maharlika are like the building itself—old and symbolic of how long it’s been neglected,” one of the residents expressed when interviewed by a local media outlet during the turnover ceremony. 

The issue was given answers by Magalong, admitting that fixing the damaged escalators is expensive, so it's better that they be replaced. The mayor assured his constituents that the CLGU will replace the destroyed escalators when it receives its 2026 budget, as it’s not covered this year. 

“We’re putting in about 25 million for operations. Isa ‘yun sa mga tinitingnan namin. Pero mahal talaga i-maintain ang ganitong escalator—baka mas makakamura pa tayo kung palitan na lang. Hindi lang kasi ito nakasama sa 2025 budget, so ilalagay natin sa 2026,” Magalong said in the interview. 

The father of the city then assures the tenants and businesses in the complex that their interests will be protected. A series of dialogues and public consultations will be conducted to make sure that they are involved in planning for the developments and changes in the building.