BCDA: John Hay takeover has begun

BAGUIO CITY – The government takeover of Camp John Hay “has actually started,” beginning with a fresh contract granted to one of the hotels operating inside this former American rest and recreation baseland, the president of the Bases Conversion and Development Authority declared here on Tuesday.

BCDA President and chief executive officer Joshua Bingcang said Le Monet was the first Camp John Hay locator to sign a contract with BCDA, after the Supreme Court affirmed with finality its April 3 decision to reinstate the 2015 Arbitral Decision which ended the 11-year contractual dispute between BCDA and the developer, Camp John Hay Development Corporation.

By voiding the 1996 John Hay lease agreement to a point in time where it never existed, the arbiter required CJHDevco to give BCDA full control over all of its properties within a 245-hectare lease area now classified as a special economic zone to BCDA. The government in turn must return the P1.42 billion investment of CJHDevco, which is owned by businessman Robert John Sobrepeña.

READ: It’s final: BCDA regains control of John Hay

The arbitration was facilitated by a tribunal formed by the Philippine Dispute Resolution Center but its ruling had not been enforced after it was challenged before the Court of Appeals by CJHDevco’s so-called third party. This is a reference to John Hay Golf Club shareholders and the developer’s clients who leased luxury homes or bought John Hay hotel rooms under time-share deals.

The Appelate Court amended the arbiter’s ruling to acknowledge the status of CJHDevco’s customers and the rights they continue to wield inside John Hay. But the High Court reversed the CA, saying the outcome of any arbitration proceedings can no longer be changed. In its October 22 resolution, the SC “denied with finality” all motions for reconsideration to its April decision, adding that “no further pleadings or motions will be entertained.”

Bingcang said the transition process for the turn over “would follow due process,” but he urged all John Hay stakeholders to sign fresh 25-year-lease contracts with the government.

Oppositors welcome to negotiate

This offer includes the businessmen and homeowners who sued the government, he replied when asked. “They need to come forward and forge a new partnership with BCDA if they want to have a continued presence inside John Hay,” Bingcang said.

He said the new deal with Le Monet, which is owned by the company of former Deputy Speaker and Ilocos Sur Rep Eric Singson, was significant because it displays the goodwill and trust this hotel has under government management. Bingcang described Le Monet as one of John Hay’s original locators.

The BCDA president said many of about a hundred John Hay locators have signified their intent to sign new agreements with BCDA. “The beauty of our arrangement is that regardless of whether the locators’ contracts only have a few year’s left in its lifespan, we give them fresh 25 year leases or more depending on how they contribute to John Hay,” he said. But he said the new contracts emphasize that

“We were mindful of our respect to the SC process at merong advise sa aming lawyers (and our lawyers have been advised that) we can start negotiating with those willing to sign deals with us,” Bingcang said. Even locators and John hay dwellers whose contracts have lapsed are welcome to sign new deals with the government, he said. Many of the 25-year contracts signed in 1996 or 1997 would have lapsed in 2021 and 2022. Some of the high-end luxury homes built by CJHDevco offered 50-year contracts.

“It will be a smooth turnover. We don’t want a situation that will instill fear or doubt in the general public. We don’t want them to be affected [by the change of administration],” Bingcang said.

Review plans

He also announced that BCDA will revisit and review the original John Hay Master Development Plan for the commercialization of the former John Hay Air Station that was approved and endorsed by the Baguio government in 1994 in exchange for 19 conditions, including the separation of 14 John Hay barangays and a 25 share from rent.

“We will invite new developers. We have John Hay properties that have high potential for the private sector, as well as investment programs based on current needs like mass transport,’ Bingcang said. This would need a retooling “and future-proofing” of John Hay’s outdated plans and sustaina balance between development and the environment.

The review could cover the conditions set by baguio, some of which have already been fulfilled, Bingcang said, citing conversations he had with Mayor Benjamin Magalong.

The mountain city’s 25 percent from rent that CJHDevco used to pay may now reflect John Hay taxes, indirect benefits and the domino effect of John Hay developments on the Baguio economy, he said.

Magalong last week said Baguio’s accountants are set to reconcile the remaining fiscal obligations BCDA still owes the city. INQ