John Hay firm gets license from City Hall after 30 days

BAGUIO CITY—The city government has released occupancy permits for John Hay Suites, which its developer claims it failed to acquire from the Bases Conversion and Development Authority (BCDA), triggering a debt feud.

“We received the occupancy permits from City Hall [on April 26] exactly 30 days, which is how it should be,” said Alfredo Yñiguez, executive vice president and chief executive officer of Camp John Hay Development Corp. (CJHDevco).

“The same application, coupled with the same documentary requirements, is still pending with the One-Stop Action Center (Osac) of John Hay Management Corp. (JHMC) for the last 15 months,” he said.

CJHDevco has a 25-year lease contract, which is renewable for another 25 years, to develop the former American rest and recreation baseland into a tourism estate.

But following a series of legal and financial entanglements with the government, CJHDevco rescinded a 2008 renegotiated lease agreement in December last year over alleged government breaches of the deals.

Yñiguez said the failure of the Osac to issue permits within 30 days as promised was a key issue it raised against BCDA, and its subsidiary firm, JHMC, the estate manager of the Camp John Hay Special Economic Zone.

“The city government’s quick action proves our case that the Osac had been deficient, in violation of the contract,” Yñiguez said on Thursday.

Arnel Casanova, BCDA president, had dismissed the developer’s allegations, insisting that the government had fulfilled all of its obligations to CJHDevco.

In a statement, Yñiguez said the grant of occupancy permits “paves the way for the long-anticipated and even longer-delayed operation of the 208-unit John Hay Suites.”

“It also serves to highlight the crux of the current and previous disputes and contract restructuring between CJHDevco and BCDA, which is [the government’s] failure to issue in a timely manner the building, occupancy and operating permits required for its projects,” he said.

JHMC had cited fire and safety violations as among the major reasons for denying John Hay Suites the occupancy permits.

CJHDevco said the construction of John Hay Suites was earlier delayed when BCDA failed to issue a building permit in 2003.

Yñiguez said the suites “has sold out all units [and the occupancy permit allows CJHDevco] to begin operating the remaining 167 of 208 units, as well as the 19th Tee Restaurant and other common areas, within the next quarter.”

Earlier, a water refilling firm operating inside John Hay complained of being dragged into the feud between CJHDevco and BCDA, filing a case in court against an order by JHMC to shut down its operations.

The court, however, dismissed the petition and upheld the authority of JHMC to issue the cease-and-desist order against John Hay Spring Inc., a subsidiary of CJHDevco. With a report from Vincent Cabreza, Inquirer Northern Luzon