Manila, Jan. 5 -- The city government must resolve long-standing issues over the Baguio public market after SM Prime Holdings withdrew its unsolicited proposal to redevelop the more than three-hectare property, officials said Monday.

Vice Mayor Faustino Olowan said the city needs to settle problems like property boundaries and occupant rights before any development can proceed.

"It is unfortunate that we are back to square one. This is the second time we dreamed of improving the public market but did not materialize," Olowan said in a media interview.

In a Dec. 19 letter, SMPH cited unresolved matters among the city's executive and legislative branches, market vendors and other stakeholders as the reason for withdrawing its 2020 propos...