Mayor to BCDA: Respect 19 rules in John Hay dev’t

BAGUIO CITY – Mayor Mauricio G. Domogan demanded officials of the Bases Conversion and Development Authority  and its subsidiary, the John Hay Management Committee to respect the 19 conditionalities imposed by the city government that paved the way for the development of the 247-hectare John Hay Special Economic Zone to avoid more conflicts.

            

“BCDA and JHMC officials must remember that there are already previously settled issues in relation to the 19 conditionalities which were affirmed by past administrations,” Domogansaid .

           

This, after he received separate letters from lawyer Arnel Paciano Casanova, BCDA president and chief executive officer, and lawyer Mita Angela Dimalanta, JHMC vice president, questioning the building and occupancy permits issued by engineer Oscar V. Flores, city building official, covering the 4-story John Hay Suites when BCDA’s one-stop action center failed to issue such permits to the developer for months now.

            

According to the city mayor, the city government had no problems dealing with previous BCDA administrations, especially in the issuance of permits by the local government, and the payment of taxes to the city since such issues were already settled and agreed upon by both parties to speed up the development of the former American rest and recreation center.

           

 “We had been supporting BCDA and JHMC in their bid to make the former American military base a world-class multipurpose tourism center and we will continue to do so but they should not make drastic and unilateral actions that would create conflicts between the government and the private sector,” he stressed.

            

Domogan explained the current media and legal wars between BCDA and the Camp John Hay Development Corporation (CJHDevCo) relative to alleged breaches in the lease agreement by both parties is now depicting a bad image on the government’s treatment to investors willing to help infuse added capital to perk up the city’ and the country’s economic growth.

            

In both letters addressed to Flores and furnished Domogan, Casanova and Dimalanta said “BCDA will not respect the building and occupancy permits issued by the city government to CJHDevCo’s John Hay Suites” and demanded that the same be immediately withdrawn considering that the State owned corporation has jurisdiction over the developer.

            

However, Domogan argued it is clear under the provisions of the Local government Code which were strengthened by Resolution 362, series of 1994 that lessees inside the JHSEZ must secure their building, occupancy, business and other permits from the city building official.

            

“It is unfortunate that the current impasse in Camp John Hay has deprived the city government nearly P1 billion share from the accumulated unpaid lease rentals which were supposed to have been utilized to fund the implementation of high impact projects and enhance the delivery of basic services to our constituents,” Domogan said.

           

Her added both parties should go back to the drawing board and thresh out “win-win solutions” to their supposed contract breaches instead of insisting on their respective positions that are not leading towards the right direction which compromises public welfare.

           

“BCDA and CJHDevCo officials must take into consideration that the city government is a party in interest, thus, they must not resort to drastic steps in bolstering their self-serving positions that might in the end affect public welfare,” Domogan said.

           

He cited importance of amicably settling the issues raised by both parties on their respective breaches on the original lease agreement and the succeeding revised agreements.

           

“We had been continuously talking to both parties over the past several weeks but it seems each party has its own interpretation on their respective breaches that could drag the cases for years thereby leading to the non-payment of the city’s share from the lease rentals,” Domogan said.

           

The mayor said BCDA’s interference to already settled issues by the previous administrations will surely complicate matters that could eventually lead to the filing of charges and counter charges leaving the people of Baguio at the losing end.

           

Domogan explained the history of the 16-year old lease agreement wherein both BCDA and CJHDevCo had their own breaches in revised agreements.