BAGUIO CITY – The city government here stands to benefit in terms of its 25 percent share from lease rentals once the management of the Bases Conversion and Development Authority and the Camp John Hay Development Corporation will sign a P500 million restructuring agreement relative to the development of Camp John Hay into a world-class multi-use tourism center that will boost the city’s sagging tourism industry.
This was bared by Mayor Mauricio G. Domogan following the commencement of negotiation between the two parties on the long standing conflict that will put order in the remaining years of the lease of CJH, the former American rest and recreation center in the city, to the private developer for the fulfillment of the supposed 50-year agreement that was signed in October 1997.
Once the agreement will be signed by both parties, Domogan disclosed CJHDevCo will immediately pay to BCDA the total amount of P100 million as initial payment for its unpaid lease rentals where the city is entitled to have a share of P25 million.
Based on the contents of the restructured agreement, CJHDevCO owes BCDA a total amount of more than P507 million representing portions of unpaid lease rentals that trace back to October 1999 although the developer had been remitting to the State-owned corporation a fraction of its lease rentals for the development of the 246-hectare CJH special economic zone.
According to Domogan, the restructured agreement provides that CJHDevCO will pay to BCDA 50 percent of its total balance or a total of P203.5 million three to six months upon the signing of the restructuring agreement while the remaining 50 percent will be paid to the corporation at least one year after the execution of the agreement.
From the agreed arrears of CJHDevCo relative to the unpaid lease rentals, the local chief executive disclosed the city government will be entitled to approximately P126.75 million representing its 25 percent share which could be used to bankroll numerous unimplemented major development projects in the city that will help enhance the local tourism attractions which will result to enticing the influx of more foreign and domestic tourists to visit the country’s undisputed Summer Capital.
Domogan expressed confidence the two parties will be able to finalize the agreed terms and conditions of the restructured lease agreement within the next few weeks so that the city government could already claim its entitlement that will be immediately utilized to implement impact projects that will allow the city to move on in terms of development and have new attractions so that tourists will be enticed to keep coming back to the city and spend their money here.
The CJH watershed and forest reservation has a total land area of 686 hectares and encompasses 14 out of the city’s 128 barangays but only 246 hectares had been declared as special economic zone that was subsequently leased out to CJHDevCO in 1997 pursuant to around 19 conditionalities including the segregation of the barangays from the reservation so that qualified occupants will have their own titles to the lands which they currently occupy.
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