As the expiration of the 1947 Military Bases Agreement on September16, 1991 loomed, the likelihood of its extension came into serous doubt. Once more a new agreement was drawn. The Preamble of Treaty of Friendship, Cooperation and Security and its Supplementary Agreements" required the concurrence of the Philippine Senate for it to be valid. After the senators had made their respective stands on the matter, they were deadlocked with 11 for and 11 against the ratification of the Treaty. To break the tie, Senate president Jovito Salonga cast his vote against ratification.

Yet, even before that die had been cast, the Legislative Executive Bases Council (LEBC) was formed to draft a framework conversion plan for the American military bases as early as 1989. In keeping with its traditional role as a resort facility, the LEBC proposed that Camp John Hay be used for tourism development and forest protection. Consequently, when the Camp was turned over to the Philippine Government on July 4, 1991, its first steward was the Philippine Tourism Authority.

Later, pursuant to Republic Act 7227, the Bases Conversion Development Authority (BCDA) was created to oversee the conversion of all base lands into alternative uses. By the end of the year, President Fidel Ramos signed Proclamation 190 transferring the ownership, administration and control of Camp John Hay to the BCDA. It also designated Camp John Hay for "tourism, human resource development and multiple use forest watershed reservation purposes.

To implement its provisions, Executive Order No. 103 established the John Hay Development Corporation (JHDC). At the end of 1993, Wallace Air Station in Poro Point was included to the purview of the JHDC. To reflect its greater area of responsibility JHDC was renamed John Hay Poro Point Development Corporation (JPDC). (On October 3, 2002 President Gloria Macapagal Arroyo issued Executive Order 132 which refocused the company’s thrust and purview on Camp John Hay and resulted in its current name: John Hay Management Corporation.)

After almost a century of simply hosting a military recreational facility, the people of Baguio were given an unprecedented opportunity to have a say with regard to the Camp. Public consultations were held in the early 1990s. The results of these and provisions of Proclamation 420 designating a Special Economic Zone (SEZ) in the Camp were incorporated into the Camp John Hay Master Development Plan (CJHMDP) that was submitted to the Baguio City Council for review. It was approved through Resolution No. 346 in 1996.

With the stage set for its privatization, the face, contours and feel of the Camp would be reshaped on a scale not seen since the 1920s. The time to shed the cloak of timelessness that Camp John Hay had worn for over nine decades had come.

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