Friday, July 04, 2008 [ manilatimes.net ]
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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