Businesses in Camp John Hay sign up with BCDA for leases

‘CJHDevCo has no authority over former US military camp’ 

BAGUIO CITY -- The state-owned Bases Conversion and Development Authority (BCDA) said more firms and locators doing business in the John Hay Special Economic Zone (JHSEZ) here have entered into lease agreements with BCDA saying the Sobrepeña-led Camp John Hay Development Corp. (CJHDevCo) lost its privilege to manage the special economic zone.

“The firms have recognized that CJHDevCo has been divested of its authority to manage and administer the John Hay Special Economic Zone and want to merely protect their investments, thereby preferring to do business directly with BCDA,” said BCDA president and CEO ArnelPaciano D. Casanova.

Inbound Pacific, Inc. (IPI), a former sub-lessee of CJHDevCo, which operates the Mile-Hi Center and Cantinetta, has recently signed two lease agreements with the BCDA for a total contract price of P60.52 million.

Inbound Pacific’s first contract involves the lease of the 6,275-square meter Mile-Hi Center comprised of retail and restaurant facilities, while the second contract involves the lease of the 261-square meter Cantinetta Restaurant and Café also within the JHSEZ.

Casanova said CJHDevCo has no more authority over the John Hay Special Economic Zone and is operating without a legal basis. 

He said CJHDevCo can no longer avail of fiscal and non-fiscal tax incentives offered in the economic zone.  CJHDevCo has changed its status to a VAT Registered Enterprise and has started passing on VAT charges to its customers and sub-lessees.

“The business locators now recognize BCDA’s authority over John Hay after the lease agreement of CJHDevCo has been rescinded by virtue of the Final Award rendered in the arbitration under the Philippine Dispute Resolution Center, Inc. (PDRCI),” said Casanova.

The Final Award was also confirmed by Branch 6 of the Regional Trial Court (RTC) of Baguio.

Following the confirmation of this rescission, the Notice to Vacate was served by the Ex-Officio Sheriff of the First Judicial Region, RTC Baguio Branch 6 to CJHDevCo and all persons claiming rights under them.

Casanova added, “We are taking control of the Camp and the businesses are voluntarily signing up with BCDA. This affirms that the Sobrepeña-led CJHDevCo has no more authority to do business inside the John Hay Special Economic Zone.”

“We welcome Inbound Pacific, Inc. and we look forward to working with them towards the development of the John Hay Special Economic Zone into a wholesome family-oriented tourism complex,” Casanova said.

Casanova said the new lease contracts mark the start of a new and favorable business environment in the economic zone. He added that other firms have expressed their interest to sign and invest with the BCDA.