GSIS exec affirms joint venture with SM over tree park; mayor objects

By Aileen P. Refuerzo

BAGUIO CITY – A Government Service Insurance System executive has affirmed the existence of a joint venture agreement with the SM Development Corp. for the development of the GSIS property near the Baguio Convention Center.

But Mayor Reinaldo Bautista Jr. said his position to preserve the forested area within the Baguio Convention Center reservation as a tree park remains and the city’s interest will be considered before any development will be allowed in the area.

He said if ever there are transactions relative to the area’s development, he will make the proper action to protect the city’s stakes.

The mayor was reacting to reports that SM Investment Corp. plans to pursue its plan to transform the area into a condotel complex which plan was earlier said to be recalled after the city officials and organizations served notice to oppose the area’s development.

GSIS Asset Management Group senior vice president Sergio Andal Jr. in a letter to the city council confirmed that GSIS entered into the agreement with SMDC for the development of the property now the subject of a controversy on its ownership and status. Andal said the letter to the city council is “in compliance with your letter dated 13 May 2008, requesting GSIS to submit a letter of intent for whatever development it may undertake in the tree-planted area near the Baguio Convention Center’ as filed by Honorable Councilor Betty Lourdes F.Tabanda.”

The city council Monday decided to invite Andal in its next session tomorrow and to bring with him a copy of said joint venture agreement.

Earlier, the SMDC through representative Carlo Alampay presented before the city council a concept plan for condotel project dubbed “Baguio Air” which would involve the development of the 1.4-hectare area with the construction of four 13-storey condotel buildings and commercial complex as highlights. Alampay said under the joint venture, SM would finance and undertake the constructions while GSIS would contribute the land.

It would also include the “redevelopment” of the Baguio Convention Center and the Sunshine Park.

He said the company has inventoried a total of 967 trees in the area. A total of 313 trees were recommended for cutting and 105 for balling and transplanting thus, a total of 549 trees will remain.

But Bautista said any plan would not be plausible at the moment given the court cases questioning the status and ownership of the subject land.

He said any plan to touch the area would surely pass through the city government for approval and given the land’s known status as institutional, he said he is poised to deny any plan to develop the area into something other than being a forest area.

Three proposals are now pending before the city council calling for the preservation of the pine forest as such and opposing any plan to development the same into anything but a pine forest. Councilor Richard Carino filed a resolution “opposing any plan to cut trees or construct a building by SM properties or any other persons over the lot situated between the Baguio Convention Center and Court of Appeals building.”

Councilors Fred Bagbagen, Isabelo Cosalan Jr. and Elaine Sembrano’s joint proposed resolution also opposed the “removal of the Pine Forest at the BCC grounds to allow construction of a commercial structure by private developers.”

Councilor Betty Lourdes Tabanda, meanwhile said she wants to request the GSIS to submit a letter of intent for whatever development it may undertake in area.

The councilors said removing the woodland would have great effect on the environment as apart from being one of the few remaining pine stands in the area, it supplies part of the water needs of the city.