The plan is in response to the recent signing of a 39-year land lease agreement between Ayala Land Incorporated and the Camp John Hay Development Corporation (CJHDevCo).
The CJH monitoring team was formed during the term of former Baguio mayor Braulio Yaranon.
Baguio Vice Mayor Daniel Fariñas said the team would also discuss the possibility of meeting again with representatives of CJHDevCo, the Bases Conversion and Development Authority (BCDA) and its subsidiary, the John Hay Management Corporation (JHMC).
Fariñas said with the recent deal, the City Government can begin collecting taxes. He said the meeting would be an opportune time to also discuss "differences" in computation of taxes due between the Baguio City Treasurer's Office and the JHMC.
If no final agreement is reached, Fariñas said the city could demand a down payment.
He said rather than wait for issues to be resolved some amount can be collected. "The interests are increasing."
Fariñas suggested for the monitoring team to also make a concrete pronouncement on agreements being done by the CJHDevCo, JHMC and other entities, all without informing local officials.
"The city is supportive of the entry of development, of businesses but we should not be sidelined," Fariñas said, adding the issue not only pertains to business expansion but also on environment.
Ayala Land Incorporated plans to invest P3 billion for a call center and retail facility, in a four-hectare property. The land lease agreement took effect last July 1.
Compared to Subic, where an economic zone also exists, the local government is actively involved in the formulation and implementation of policies relative to any development, Fariñas said.
"We are too kind. It's about time we should be involved," he stressed. He added the restructuring entered into recently also has to be looked into.
In a press statement, the BCDA and the CJHDevCo said the restructuring deal puts a close to a five-year standoff in the development of CJH, brought about by the 2003 Supreme Court (SC) abolition of their tax incentives.
In 2005, CJHDevCo asked for a third restructuring after it again defaulted in its lease payments.
At the time, arrears reportedly reached P2.3 billion, of which P1.8 billion represents the principal lease, and P400 million in interest and surcharges.
As a result, the BCDA allegedly owes the City Government P500 million as its un-remitted share in the operation of Camp John Hay.
As of August 2006, unpaid lease ballooned to almost P600 million, as per account of the treasurer's office.
CJHDevCo first restructured its lease rentals in 2000, then in 2004 when it defaulted on a P50 million payment, which was supposed to be paid on December 2003. Its latest restructuring of rentals was this year.
The CJHDevCo and BCDA press statement also stated the new deal paves way for the payment of P2.4 billion in lease rentals to the National Government within a 15-year period and ushers new construction of some P5-billion worth of business, residential and hotel facilities expected to generate 30,000 new jobs.
During the July 1 signing, a new CJH business alliance was also sealed "to catapult CJH as the premier eco-tourism and business destination north of Manila."
The Ayala group will contribute to the development efforts of the Sobrepeña-led consortium by introducing an IT and business park with retail facilities in 12 hectares of CJH.
The Fil-Estate group, on the other hand, will infuse at least P350 million pesos for the completion of the Camp John Hay Suites.
The 350-unit Camp John Hay Suites is the second hotel of CJH anticipated to follow the success of the 187-unit Camp John Hay Manor.
The Council committee on laws scheduled a public hearing on CJH issues on July 8, at 9 a.m. at the Session Hall.
