The Quezon City government has ordered the closure of two buildings known as the Rotary Center along Roces Avenue, citing unresolved legal issues and permit-related concerns following the expiration of a long-standing lease agreement.

According to the city government, the properties stand on city-owned land and were leased in 1995 to Rotary International District 3780 under a 25-year contract that required an annual rental of only P1.00. 

The lease expired on July 30, 2020, and was not renewed.

The local government on Monday, Dec. 29, stressed that the closure was not abrupt.

“Hindi biglaan ang pagsasara ng dalawang gusali… na ipinatayo ng pamahalaan sa lupaing pag-aari ng lungsod (The closure of two buildings… which the government had built on city-owned land was not sudden)

After the lease expired, the city said it remained in dialogue with Rotary District 3780 regarding the proper use of the center. 

However, authorities later discovered that the facilities were being occupied and managed by the Rotary Center Foundation Incorporated (RCFI), not by the Rotary district itself.

“Lingid sa kaalaman ng lokal na pamahalaan, ang Rotary Center ay inookupa at pinagkakitaan na ng Rotary Center Foundation Incorporated (Unknown to the local government, the Rotary Center is now occupied and monetized by the Rotary Center Foundation Incorporated),” it said. 

The foundation was allegedly collecting rent from businesses and offices operating inside the buildings, including restaurants and a manning agency.

The LGU said that during the issuance of notices to occupants, it was confirmed that tenants were paying rent to RCFI. 

Reports further indicated that even Rotary Clubs and institutions using the center were being charged fees by the foundation, despite RCFI insisting on paying the city only P1.00 annually during lease renewal discussions.

City officials emphasized that there is no agreement between the local government and RCFI and that the foundation had no authority to collect rent. 

“Walang kasunduan ang lokal na pamahalaan sa naturang foundation, at walang pahintulot ng lokal na pamahalaan ang paniningil nila ng upa (The local government has no agreement with the foundation, and they are not allowed to charge rent from the local government),” it said. 

“Wala itong kaukulang mga permit, at walang idineklarang kita (It does not have the necessary permits, and has no declared income),” the city added.

The local government further clarified that RCFI is not recognized by Rotary International and does not represent any of the 108 Rotary Clubs in Quezon City, citing an official statement from Rotary District 3780. 

“Ang RCFI ay hindi rin kinikilala ng Rotary International at hindi rin kumakatawan sa alinman sa 108 Rotary Clubs sa Quezon City (RCFI is also not recognized by Rotary International nor does it represent any of the 108 Rotary Clubs in Quezon City),” the statement said.

The city said its long-term plan is to convert the buildings into a community center that will be made available free of charge to accredited socio-civic and professional organizations.

“Ang tanging hangarin ng lokal na pamahalaan… ay gawin itong community center, at ipagamit ng LIBRE (The local government's only desire... is to make it a community center, and make it available for FREE),” the statement said.

The Quezon City Council clarified that its earlier resolution merely authorized Mayor Joy Belmonte to negotiate a possible agreement on the use of the property, while the final decision on the buildings’ future remains with the mayor.

Meanwhile, on Dec. 26, city authorities proceeded to padlock the building with approximately 50 personnel installing metal barriers around the premises.

According to RCFI,  staff, maintenance personnel, and volunteers inside the building were initially prevented from leaving due to padlocked doors, causing distress among those present. 

The operation was led by a lawyer from the City Legal Department.

RCFI said the Rotary Center has served as a central operations hub for Rotary District 3780 and its member clubs and  has worked alongside the Quezon City government for more than five decades, mobilizing over 120 Rotary clubs.

The foundation emphasized that the buildings, constructed in 1996, were funded entirely through donations and fundraising activities of Rotary members and volunteers, and not through public funds.

“These buildings were raised through the contributions of Rotary members and fundraising done club-by-club—ordinary professionals and community leaders pooling resources to serve Quezon City,” RCFI said in a statement. 

RCFI said the use of the city-owned land was granted under what it described as a usufruct-type or nominal lease arrangement approved by the Quezon City Council, commonly referred to as a “one-peso-per-year” lease, to allow Rotary to establish a headquarters and service center for public benefit.

The foundation said it applied for lease renewal in 2019 ahead of the contract’s expiration in 2020 and claimed that the Quezon City Council passed a resolution authorizing the mayor to negotiate a new 25-year lease, which would have extended the agreement until 2045.

However, RCFI said the renewal was not executed, and instead, it received a cease-and-desist order citing the absence of permits and the lack of a renewed lease.

The foundation argued that these issues could not be resolved without executive action from the city government.

With its requests for dialogue allegedly unanswered, RCFI said it elevated the matter to the Court of Appeals to seek clarification on whether a city mayor may decline to implement a duly passed City Council resolution.

The foundation said it remains committed to pursuing a lawful and peaceful resolution and called on the Quezon City government to explain why the lease renewal authorized by the City Council was not executed.