1 week ago
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BAGUIO CITY — The Camp John Hay Development Corp. (CJHDevCo) reiterated to its clients it was granted a 25-year lease with the sole option to renew for another 25 years.
This means that the Bases Conversion and Development Authority (BCDA), which oversees all former US military bases and recreation facilities such as Camp John Hay in this mountain resort, should have honored its lease agreement with CJHDevCo, which claimed the "agreement should end in 2046."
"BCDA is fully aware of the 50-year term," said CJHDevCo in a statement.
It added that BCDA knew very well the operations, which include the authority to sell properties with 50-year terms.
"It was BCDA which instructed us to invite public investments in Camp John Hay, guaranteeing 50-year terms. It also authorized us to sell on its behalf properties, dacioned as rental payments, with proceeds as sales to be received by BCDA," the statement said.
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It also claimed that BCDA has accepted rental payments from CJHDevCo in the form of 30 golf shares, 16 The Manor units, 10 The Forest Lodge units, and five log homes with dacion values all computed under 50-year leasehold terms.
The limited warranty deeds issued to BCDA for The Manor and Forest Lodge Hotels contained 50-year leasehold term annotations.
Despite CJHDevCo's fulfilling its duties and obligations, the Arbitral Tribunal (AT) found BCDA in breach of the lease agreement from the beginning. As such, lease payments were suspended.
The AT has ordered BCDA to return rental payments made by CJHDevCo., but to date, BCDA has not yet refunded the rental payments owed to CJHDevCo.
The AT also ordered that the money and benefits already received by CJHDevCo will compensate for whatever interests may be due for BCDA's use of CJHDevCo's money.
It also ruled that CJHDevCo gets to keep money and benefits received, which include payments made by owners/investors for the improvements, as compensation for BCDA's interest obligation.
Earlier, BCDA claimed its takeover of the 247-hectare special economic zone at Camp John Hay is a win for the Filipino people because it will bring in new investments.
CJHDevCo refuted such a claim, saying "BCDA is evicting the Filipino people, who have already invested their life saving in Camp John Hay."
