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BAGUIO CITY: Baguio officials will make sure that the interest of
the city government is protected and will call for clarifications
regarding the reported P3 billion investment of Ayala Land Inc.
(ALI) covering an area of 12.06 hectares within Camp John Hay.
This was assured by city vice mayor Daniel
Farinas Thursday even as he claimed that the 19 conditions imposed
by the former city council when it endorsed the master development
of Camp John Hay (CJH) are being strictly implemented and complied
with by the CJH Development Corp.
“I am for development but as city officials,
we want to make sure that the interests of the city government to be
protected,” Farinas told reporters.
The vice mayor added that the city is likely to
reactivate the CJH monitoring committee formed during the term of
former city mayor Braulio Yaranon with a mandate to check compliance
of the 19 conditions embodied in Resolution 362 series of 1994.
The official’s statement came when major
broadsheets reported Thursday that Ayala Land and Camp John Hay
Development Company signed an agreement for the development of 12.06
hectares within the former US military base that will include
commercial and retail projects.
Reports said that the mega project will include
construction of a business process outsourcing (BPO) office and
facilities in an area of 40,000 square meters and a retail center
covering an area of 7,000 square meters.
The memorandum of agreement between ALI and CJH
was signed on Tuesday and the contract will last to 39 years with
the projects expected to start early next year, reports said.
Farinas, on the other hand, said that the city
council might revive the proposed resolution earlier filed which
sought for clarification regarding the reported restructuring of the
lease agreement between the CJH Development Corp. and the Bases
Conversion Development Authority (BCDA).
This, as the vice mayor surmised that the
interests of the city government might be affected by the
restructuring of the lease agreement.
The official, meanwhile, said that the huge
investment by ALI would pave the way for the city government to
finally collect its unpaid tax share from the development of CJH.
An earlier certification issued by the City
Treasurers Office revealed that total unpaid obligation of CJH for
the city’s share in lease rentals amounts to P590, 131,254.50 as
of August 22, 2006, exclusive of interest and penalty charges.
To recall, lawyer Lyssa Pagano-Calde, vice
president and chief operating officer of John Hay Management Corp. a
subsidiary of BCDA, has informed the city council that the BCDA has
put on hold the release of the city’s tax share until the Supreme
Court decision nullifying tax incentives within the CJH special
economic zone has been resolved.
-- Harley F. Palangchao
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