Mayor urges new John Hay agreement; BCDA: No way

BAGUIO CITY -- Mayor Mauricio Domogan is pressing re-structuring of agreements surrounding Camp John Hay here even as the Bases Conversion Development Authority said they were not negotiating lease contract of the 247-hectare economic zone.

Domogan said he hopes with new leaders of the John Hay Management Corp, negotiations with the BCDA would result to new agreements beneficial to the city government.

The JHMC is a subsidiary of the BCDA.

“We hope that we can be able to fix and re-negotiate,” the mayor told a press conference here Wednesday. 

Domogan said if amendments will be made, shares of the city from the former American military camp should be assured to compel the developer and national government to pay directly to city treasury.

“Para di na dadaan sa BCDA, diretso na sa atin,” added the mayor.

Domogan said a lesson has been learned from legal battles faced by JHMC, BCDA and Camp John Hay Development Corp. (CJHDevCo) which put billions intended for the city in limbo.

“We have learned our lesson from the billions we have yet to receive,” Domogan said.

The city government had alleged the BCDA ignored 19 conditions the former imposed that should govern commercial operation of CJH.

The conditions, under a city council resolution, provides 25 percent annual share from revenues generated in commercial operation of the John Hay.

BCDA allegedly failed to remit city shares since legal battles started with developer CJHDevco.

Domogan said only 25 percent of the identified area in Camp John Hay was developed by CJHDevCo since the agreement was signed between the contracting parties in 1997.

Today, CJHDevCo is waiting for BCDA’s payment of P1.4 billion in cash before it vacates the property.

The payment was the result of a previous Philippine Dispute Resolution Center Inc. (PDRCI) decision urging CJHDevCo to vacate the leased areas and the BCDA to pay billions as reimbursement for rental payments of the developer.