BCDA, John Hay developer told: Settle row out of court

By Aileen P. Refuerzo

BAGUIO CITY – The city government urged the Bases Conversion and Development Authority and the Camp John Hay Development Corp. to settle their conflict out of court to prevent the local government from being prejudiced.

In a position paper submitted to the House committee on bases conversion, Mayor Mauricio G. Domogan said the city government and its constituents will suffer serious damages since it will not be able to receive its annual 25 percent share from the lease rentals from the operation of the 247-hectare special economic zone that could be used to fund the implementation of priority development projects and enhance the delivery of basic services.

“We urgently and collectively call on both parties, BCDA and CJH DevCo, to exert extra effort in settling their legal differences amicably and abstemiously outside the four walls of the court, sitting down to negotiate based on the contracts they have entered into which constitute the law between them,”

Domogan said both parties must also evaluate and determine the obligations that any of them failed to comply and its monetary value so that payments can be made at the soonest possible time and the city could subsequently get its share.

According to him, there is no way of knowing which side would win the court’s nod and that the said fact would be exacerbated by the tedious court process which serve no other purpose but to delay what benefits the people of Baguio can secure from the development of the former American rest and recreation center like its 25 percent share from its lease rentals.

CJH DevCo filed a civil case before the Regional Trial Court Branch 7 of Baguio City to stop BCDA from allegedly forcibly taking over the facility for the reason that it has accumulated over P3 billion in lease rentals over the past 16 years where the city is entitled to around P750 million.

Domogan said because of the non-compliance of both parties on the terms and conditions of the original contract of lease, first and second restructuring agreements and the 2008 new restructuring agreement, the agreement between the city and BCDA to utilize its 25 percent share from the lease rentals of Camp John Hay for the payment of the total consideration of the P250 million purchase price of the Baguio Convention Center together with the 1 hectare lot where the facility is standing did not materialize.

“The city government was then constrained to pay the remaining unpaid consideration in the total amount of P208 million, including not less than P110 million interest of the unpaid balance from its own resources after the Government Service Insurance System had condoned at least P50 millions part of the interest,” Domogan said, citing some of the city’s priority projects were sacrificed to prevent the interest from spiraling through the years.

“We should not be made to suffer for the shortcomings of both parties. The best way to go about the problem is for them to go back to the negotiating table to discuss their respective allegations and then come out with acceptable solutions. We pray that both parties get back their senses to solve their problems amicably for the benefit of our constituents,” he added.