AFTER turning over its leased premises that was gutted in September 2004, to the city government, Bugnay Construction and Development Corporation will likely still face charges for still some unsettled obligations.

This was the opinion of the city council which directed the City Legal Office to file a legal action against the company to compel the latter to give what is due to the city as stipulated in its contract of lease.

In a resolution authored by Councilor Michael Fernandez and Jose Netu Tamayo, the city council said that Bugnay should return the Magsaysay Market area leased by the city government 20 years ago with all the improvements thereon.

Tamayo, a lawyer, invoked Item 16 of the contract, signed April 27, 1987 by then Mayor Liberato Reyna Sr. and Bugnay president Antonio Licuanan, Bugnay “shall at the expiration of the period of the lease, turn over to the lessor without demand, the entire market building and all its appurtenances attached thereto…”

Meanwhile, Bugnay chair Manolo Uy wrote to Mayor Benjamin Lim dated Nov. 11, 2005 and indicated his company’s intention to pre-terminate the contract of lease.

Bugnay said that upon acceptance, the City of Dagupan and Bugnay shall have no more claims or right of action against each other, either by way of damages, unpaid taxes, rentals or any other claim whatsoever.

Mayor Lim conformed and accepted Bugnay’s proposal as evidenced by his signature at the bottom of the letter.

Tamayo said if Bugnay could no longer rebuild the Magsaysay Market complex, it should at least give to the city government the proceeds of its insurance “because the city is entitled to that”.

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