Issue of April 8, 2018
     
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Compromise deal hoped anew between CJHDevCo and BCDA
by Jane B. Cadalig

The city government is hoping that the developer of Camp John Hay and the Bases Conversion Development Authority would sit and discuss how to continue the development of the former American rest and recreation facility.

Mayor Mauricio Domogan said he is hoping that under the Duterte administration, the Camp John Hay Development Corporation (CJHDevCo) and BCDA would sit and reach a compromise agreement so that the development of John Hay can push through.

He said a compromise agreement between the developer and BCDA would address the issues that have caused a setback in the development of the area and has jeopardized the release of the city government’s share from the revenues derived from its economic operations.

When Baguio City consented to the development of John Hay, one of the conditions was for the city government to receive a 25 percent share from the lease rent paid by CJHDevCo to the BCDA.

Domogan said if CJHDevCo and BCDA could reach a compromise agreement, the city government is asking that Baguio’s share from the revenues generated by John Hay will be directly remitted to the city’s coffers and no longer be released to BCDA.

“Whoever will continue the development of John Hay, whether it will be the Sobrepeña group or a new investor, we are asking that we amend the contract so that the share of the city from the developer will be directly released to the city government,” he said.

Under the old contract, CJHDevco remits to the BCDA the city’s share from John Hay before the BCDA releases the same to the city government.

The legal squabble that hounded the developer and BCDA however left the city government at the losing end because it failed to receive its share.

“We are hoping that a compromise agreement will be reached and hope that a new investor would come in to continue John Hay’s development. You could just imagine the income that can be generated, the livelihood opportunities that can be created, and the (boost in) tourism if John Hay is fully developed,” Domogan said.

He said only about 23 percent of Camp John Hay has been developed. Out of the 625-hectare John Hay reservation, 301 hectares has been segregated for special economic zone and 324 hectares is a reservation area, which covers the 14 barangays that the city government also asked to be segregated when it endorsed the development of Camp John Hay more than 20 years ago.


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