LAOAG CITY, Philippines (UCAN) -- The planned conversion of an 84-year-old elementary school into a commercial center has generated debate in a northern Philippine city.

On Dec. 8, Laoag City Mayor Michael Farinas and Bellagio Holdings Inc., the winning bidder for the conversion project, signed a contract to convert Laoag Central Elementary School (LCES) into a shopping mall. Laoag City, about 340 kilometers north of Manila, is the capital of Ilocos Norte province.

Located in the city center, the plot of land on which the school sits is owned by the Church.

In 1924, decades before Laoag became a diocese in 1961, the ranking Church official signed an agreement with the local administration allowing the land to be used by the education department. So in addition to housing LCES, the land is also home to Department of Education buildings.

The current head of Laoag diocese, Bishop Sergio L. Utleg, agreed to the proposal that the school move and its current premises be converted into a shopping mall.

However, the project has met with opposition from the school's teachers and parents of students. Following a June 2008 meeting at the school, 506 of 696 parents and teachers expressed their objection to the move in a manifesto. Teachers have also met with Ilocos Norte Governor Michael M. Keon to express their concerns.

One parent, Wilma Viernes, 38, told UCA News the move will cause hardship for her. She says on school days she rides a pedicab to bring her son to school in the morning and then to bring him home at 5 p.m.

While waiting for her son, she continued, she can pay bills, bring him his lunch, and go to both the grocery store and the public market for household needs.

She added that these trips "don't require extra pedicab fares, as all are within walking distance of the school."

Now she fears the family budget may not be enough if the school is to be relocated near the city boundary, more than a kilometer away from its present site, as planned.

Carmencita Martin, 48, a flower arranger who rents a stall nearby, told UCA News the construction of a mall might adversely affect her sales.

Mario Estabillo, a pedicab driver, worries the construction of a mall within the heart of the city will cause more traffic problems in the already crowded area.

Bishop Utleg told UCA News on Dec. 5 that people should look at the move objectively.

He believes the new shopping center will give more opportunities to locals to find jobs in the city. In these times of financial crisis, Bishop Utleg said people must consider the local economy.

In addition, "the children will also have a quieter and safer school, as the present location is quite dangerous due to the high volume of traffic in the city during rush hours," Bishop Utleg said.

Under the Dec. 8 agreement, Bellagio Holdings Inc. will construct the new school building.

The company will also lease the new shopping mall for 25 years. A total of 75 percent of the rental fees will go to the Church while the rest, including taxes, will go to the city government.

Laoag diocese serves Ilocos Norte province. Roughly 67 percent of the 658,454 people are Catholics, according to the 2007 Catholic Directory of the Philippines. Most of the rest are other Christians.

Bishop Utleg was installed as bishop of Laoag on Jan. 11, 2007.

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