The action of the city council was prompted by a letter of Bases Conversions Development Authority president and CEO Rufo Colayco dated Oct. 30, 2003, addressed to Mayor Bernardo Vergara, informing him that BCDA received a proposal to operate a gaming complex at Camp John Hay.
"As you will note, the proponents say that the proposed gaming complex can make significant contributions to Baguio City’s tourism and local economy, boosting the city’s reputation as a total entertainment and recreational destination north of Manila especially in light of the impending Ad Congress and Yuletide Season," Colayco said. He sought "guidance of the local government of Baguio City" about this matter.
Late last year, CJHDevCo chairman Robert John L. Sobrepeña, in response to the proposal to operate a gaming complex in John Hay, stressed that the approval of the proposal "shall be conditioned in (the proponent’s) compliance with all laws, rules and regulations pertinent to the Camp John Hay Projects as well as (the) securing (of) all pertinent permits from the Philippine Amusement and Gaming Corp., the Bases Conversion and Development Authority, and such other relevant government regulatory body/ies or agency/ies."
CJHDevCo likewise informed the BCDA about the business proposal and sought its opinion/directive whether or not CJHDevCo can legally proceed to enter into a business arrangement with the consortium of investors.
With the passage of the new resolution, with the Baguio City Council voting 7-1, the legal impediment for the establishment of a casino at Camp John Hay has been removed.