Business as usual at John Hay

It's business as usual at one of the country's favorite local tourist destinations - Camp John Hay in Baguio City.

- MARY ANN LL. REYES

This is even after the Supreme Court, ruling en banc, dismissed with finality all legal challenges to a bid by the Bases Conversion and Development Authority (BCDA) to oust businessman Bob Sobrepena's Camp John Hay Development Corp. (CJHDevco) from the former American base and to recover the 247-hectare property inside the John Hay Special Economic Zone (SEZ).

The High Court has upheld its April 3 decision that reinstated an arbitral ruling voiding the John Hay development lease and mandated the eviction of CJHDevco, with the BCDA required to refund to CJHDevco the rent which the latter paid amounting to P1.42 billion. It also granted BCDA's petition for review on certiorari of a decision by the Court of Appeals.

Following the transformation by BCDA of Camp John Hay into the John Hay SEZ, the lease and development of a 247-hectare portion was awarded to CJHDevco. BCDA as lessor entered into a lease agreement with CJHDevco, Fil-Estate Management Inc. and Penta Capital Investment Corp. as lessees for the use, management and operation of the leased property. BCDA shall remain the owner of the leased property while CJHDevco shall own the improvements it will introduce but at the end of the lease agreement, CJHDevco is obligated to transfer the ownership of the improvement to BCDA, according to the SC.

CJHDevco took over the 1996 lease from a previous group and invested P1.42 billion over 16 years to build hotels, luxury residences, and a modernized golf course. It was also authorized under its contract with BCDA to sublease the leased property to third persons.

However, disputes arose in 2012 with BCDA over the restructuring of the lease agreement, leading to a protracted legal battle.