BAGUIO CITY, Philippines – The Baguio City government is preparing to file a court case seeking to compel the Bases Conversion and Development Authority (BCDA) to turn over the 247-hectare John Hay Special Economic Zone (JHSEZ), citing unpaid revenue shares and the termination of BCDA’s lease with its former private developer.

Mayor Benjamin Magalong said the City Legal Office is finalizing the case, which will ask the courts to enforce provisions of Resolution 362, Series of 1994, the ordinance that laid down 19 conditions governing the redevelopment of Camp John Hay.

“We are already preparing the case. Our legal officers are coordinating closely to ensure that it is solid before filing,” Magalong said in a recent briefing.

Basis of the planned suit

City officials said the legal action will be anchored on two developments:

(1) BCDA’s alleged failure to fully remit the city’s mandated revenue shares from John Hay operations, and

(2) the termination of the lease contract between BCDA and Camp John Hay Development Corporation (CJHDevCo).

The lease was effectively terminated after the Supreme Court upheld a 2015 arbitral ruling ordering CJHDevCo to vacate the property, affirming the government’s reclamation of Camp John Hay.

According to the city government, the lease termination triggered Conditionality No. 16 of Resolution 362, which provides that once the lease expires, the John Hay property and all improvements “shall be turned over to the City Government of Baguio without compensation.”

Domogan backs Condition No. 16

Baguio Representative Mauricio G. Domogan, a former mayor who helped frame Resolution 362 in the 1990s, has publicly urged the city to invoke Conditionality 16 as the legal basis for turnover.

Domogan said the Supreme Court ruling effectively ended BCDA’s authority to continue holding the property under a private lease arrangement and should result in the reversion of the JHSEZ to the city.

“The lease has lapsed. The condition is clear: the property and improvements should be turned over to the city,” Domogan said in an earlier interview. He said he has been coordinating with the city’s legal team and supports the filing of the case.

Unpaid revenue shares also cited

The planned suit is part of a broader dispute between the city government and BCDA over compliance with the 19 conditionalities, several of which the city says remain unfulfilled nearly three decades after they were imposed.

City officials have said BCDA still owes ₱225 million in unpaid revenue shares under Conditionalities 9 and 10, which entitle Baguio City to a percentage of gross income and lease revenues generated within the JHSEZ.

The city says it has sent at least four demand letters since 2023 seeking payment, but has received no commitment from BCDA to settle the outstanding amount.

Part of wider legal conflict

The move to compel turnover comes amid long-standing tensions between the city government and BCDA over control, revenues, and governance of Camp John Hay.

Aside from revenue sharing, unresolved issues include the segregation of barangays within the reservation and the city’s role in reviewing redevelopment plans for the estate.

City officials have said they want the courts to finally clarify the respective rights and obligations of the local government and BCDA, particularly in light of the Supreme Court ruling and the city’s standing ordinance.

No response yet from BCDA

As of writing, BCDA has not issued a public statement responding to the city’s plan to seek judicial intervention. The John Hay Management Corporation, BCDA’s estate manager, has also yet to comment.

Magalong said the case will be filed once the legal team completes its review, stressing that the city is pursuing the matter through legal channels “to protect Baguio’s rights under the law.” – Rappler.com