BCDA: John Hay takeover has begun
Updated on December 18, 2024 at 11:38 a.m.
BAGUIO CITY—The government’s takeover of Camp John Hay has officially begun, marked by the issuance of a fresh contract to one of the hotels operating within the former American rest and recreation base, the president of the Bases Conversion and Development Authority (BCDA) said in a briefing here.
BCDA president and chief executive officer Joshua Bingcang said Le Monet Hotel 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 Corp. (CJHDevco).
By voiding the 1996 John Hay lease agreement, 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. In turn, the government 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.
Article continues after this advertisementThe 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 Oct. 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.”
Article continues after this advertisementBingcang said the turnover “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.
Bingcang said many of the roughly 100 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 years left, we give them fresh 25-year leases or more depending on how they contribute to John Hay,” he said. “We were mindful of our respect to the SC process at meron advise sa aming lawyers (and our lawyers have been advised that) we can start negotiating with those willing to sign deals with us,” he 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. INQ