SM CITY-BACOLOD BRINGS IN A CAPITALIZATION OF 870 MILLION TO BACOLOD CITY

   The giant SM City will infuse P870 million capitalization and investment when it opens it business in Bacolod City in October 2006.  This was revealed by Bacolod City Mayor Evelio R. Leonardia after a brief conversation with SM Tax Account Division representative Ms. Julieta Quiñones during the meeting of the Local Investment Board or LIB last December 20,2005. SM met with LIB regarding their application for tax incentives.
     SM City will start constructing a twin-story building/mall on January next year.  The structure will cater to a one-stop-shop convenience for shoppers, with cinema, food courts, department stores, snack bars, supermarket, amusement centers and an area for cultural presentations and the like.
     Quiñones said SM will employ approximately 3,000 personnel with at least 200 business establishments within the complex.  The LIB will consider the application of SM for exemption pending the submission of other needed documents.
     “These developments coming in are a big boost to our economy because they will come in time for the Masskara Festival in 2006,”Leonardia said.  “We are also in the thick of negotiation with call centers to come in next year,” he further added.
     The Local Investment Board met with representatives of SM Prime Holding, Inc.( of SM City-Bacolod) and Dynasty Management and Development Corp. ( Grand Regal Hotel) yesterday regarding their requests to avail of Tax Incentive per City Ordinance No. 207. The meeting took place at the Business Inn Hotel with representatives of the said establishments.
     Per verification with the City Treasurer’s Office, C.O. 207 gives establishments with capitalization of not less than 40 Million to avail of tax exemptions for the first 5 years of operation in the city.  SM City-Bacolod has a capitalization of 870 Million, while Grand Regal has 40.5 million.
     The Local Investment Board earlier approved the application of Grand Regal after all documents were submitted.  Data showed that they have spent 50 Million in renovation with a workforce of 100 people, 96% were Bacoleños.
     The LIB aired suggestions and concerns such as the traffic problems attendant to the developments. It was also suggested that smaller businesses in the locality will be affected but it was also noted that this development will give rise to lower prices of commodities as old local businessmen will have to compete.  The Board suggested also that Mayor Evelio R. Leonardia create a Bacolod Economic/Urban Development Board similar to the San Carlos Development Board.  Leonardia said, “While we had Bacolod City back on track in 2005, we will move Bacolod forward in 2006.”  (CMO-PIO/rav)

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