BASES Conversion Development Authority (BCDA) executives are asking tenants and sublessees in Camp John Hay (CJH) to coordinate with the state-owned firm after the CJH Development Corp. (CJHDevco) was told to vacate the property.
“With the decision of the original lease agreement [with CJHDevco] rescinded and since all their contracts are subleases, then those [contracts] would be legally affected and therefore [tenants] should come to the BCDA, now the owner of the land,” BCDA President Arnel Paciano D. Casanova said in a news conference with reporters on Friday.
“The right of a sublessee emanates from the original lease. Since the original lease has been rescinded, the rights of the sublessees are put into question, so we’re encouraging them to coordinate with the BCDA so we can properly evaluate the situation,” Casanova added.
The arbitral committee of the Philippine Dispute Resolution Center recently ruled in favor of the BCDA in its bid to terminate the contract of CJHDevco and to collect its debt in lease payments.
In its unanimous decision, the said committee decided that the original lease agreement is terminated and ordered CJHDevco to vacate the leased premises and deliver the leased property, including new constructions and permanent improvements introduced during the period of the lease, to the BCDA.
According to the opinion of one of the arbitrators and lawyer Teodoro Kalaw IV, CJHDevco should pay rentals in arrears to the BCDA to the tune of P2.4 billion.
“All the previous buyers and locators should coordinate immediately with BCDA so we could assess the kind of relationships they have with CJHDevco,” Casanova said.
The BCDA estimates there are 118 business enterprises, including restaurants, retail and other services, including business-process outsourcing offices in the property with 384 hotel rooms in the Forest Lodge. There are also 85 residential structures in CJH area.
The tribunal, however, also stated in one section of its decision that the BCDA return the amount of P1.4 billion, representing the total amount of rentals initially paid by CJHDevco to the BCDA. On this point, the BCDA is seeking further clarification from the court and aired the possibility of contesting the provision.
The judgment of the tribunal directing the BCDA to return the P1.4 billion; the court was not unanimous on that point.
There is a strong, separate opinion and this gives the BCDA the opportunity to ask the court to look into this,” said Peter Paul Andrew Flores, officer in charge of the BCDA legal services department.
Flores, also a lawyer, said they will seek a judicial confirmation from the Regional Trial Court in Baguio City to uphold the first part of the decision, the part directing CJHDevco to vacate the property and turn over all improvements on the site promptly.
15 comments
Both parties must follow the new tribunal order for peaceful settlement of the case. It’s really very hard for CJHDevco but Bob Sobrepena’s pleased for the result. The agreement to pay 1.42B must be consumated before BCDA can claim the camp. Likewise, inventories needs proper endorsement.
I’ve heard the press statement given by CJHDevco Chairman Robert Sobrepena and he clearly stated that he welcomed and respected the arbitration committee’s decision. His only concern is for those trees they have planted to be taken care well. Hope the BCDA will take this request into consideration.
Well, BCDA is doing the proper inventories of stakeholders inside the camp. It’s really a mustfor them to initiate this meeting. If the new management could help them prosper, why not? But the thing, is there any deviation from the management before? I think BCDA would add some important agreements to the usual operational procedures and system.
Now that the legal case of Bases Conversion Development Authority (BCDA) and Camp John Hay Development Corp. (CJHDevco) are starting to surface with much to be desired by the people of Baguio City. It’s the dream of this tourist place to have development inside the Camp John Hay. That robust employment offers much to the citizens of Baguio City. Even the government of the city was desperately helping both sides to put forward the development.
Yes, the people of Baguio are prematurely rejoicing with the current turn of events. At least , their hope of making their city a much better place to live in is getting ground. Irt is now for the BCDA to make the first move, for BCJDevco will not let go of the properties if their demand are not met.
It is really a must for CJH tenants to approach the BCDA for this new development. While the agreement is waiting for the final order, CJHDevCo will not vacate totally until they receive the payment coming from BCDA itself. A peaceful turnover is a must.
The stakeholders of businesses inside the camp are willing to accept the BCDA new management. Coordination from both parties must be practiced properly for honest implementation. The on-going constructing of buildings is to be considered for future involvement of the government.
good move for BCDA, whle they are waiting for the needed fund to pay CJHDevco pours in. A regular consultations with current establishments owners inside the zone will create an aura of peace within the community.
The court’s ruling making the the original lease
agreement void and ordering CJHDevco to vacate the leased
premises and deliver the leased property is a big victory for BCDA. All they have to do now to have a smooth transition is to pay Sobrepena 1.42 B.. That’s a big amount, but BCDA and the government will go all out to make this happen.
1.42 B is an enormous money to produce. To abide by the committee’s decision, BCDA should produce the amount for them to gain full management of the property involved. Loan na naman ang kailangan dito. Private financial institution will have to think twice before dipping their fingers into giving one. The rate and mode of payment is a big issue here.
CJHDevCo will not vacate the camp unless BCDA pays 1.42B as per arbitration decision. They are happy for the result and the eco-system subject too. It’s time for BCDA to fulfill this payment and claim Camp John Hay for future development. That being their time to shine as what they’ve promised.
The fact remains that CJHDevCo will not vacate the camp unless BCDA would pay the amount ordered by PDRCI. Moreover, both parties must wait for the final order from the court and
cannot take action until such time of proper endorsement. Proper coordination for peaceful endorsement. BCDA won’t take action that could take this result down.
The pine trees are set John Hay unique among other destinations. The presence of these trees posed the greatest challenge to our development plans as we believed these trees should not be cut. As a result, the CJHDevCo resolve to not cut the trees, development footprint had been substantially reduced had prayed to the Arbitral Panel that the lease contract with BCDA be reformed to reflect a reduced developable footprint and if this were not possible, then a rescission of the lease contract with damages paid instead.
During our stewardship of the Camp, we planted 230,000 more trees. Thus, we eventually turnover Camp John Hay to BCDA, the temp would be in perfect environmental condition. We hope that BCDA will continue CJHDEVCO’s vision for Camp John Hay to be the leading eco-tourism destination in North Luzon and continue with the development of the Camp with the protection of the trees and the environment in mind.
The CJHDevCo assures their buyers, locators and sub-lessees that their rights to the properties they acquired and are now using in John Hay will continue to be protected and respected. The CJHDevCo Chairman speaks for their acceptance of the resolution and reaching out for to conform at the decision until the final implementation. As such, I respect Bob Sobrepena’s action about the trees inside the camp. This is a positive response in preserving pine trees all over the camp.