The appellate court "modified" the June 27, 2003 decision of the Office of the President denying Planas’ appeal for an extension to fully develop the three lots — two in Palayan City and another in Sta. Rosa town — with a combined area of 64.4430 hectares.
In its 30-page decision, the CA’s fifth division said it was "partially" granting Planas’ petition, giving her a "first extension" of five years to develop one of the lots in Barangay Mapalad, Sta. Rosa town, which has an area of 27.4681 hectares.
On Nov. 21, 1988, Planas applied for the conversion of the three lots into an off-base industrial housing site for Fort Magsaysay.
The project was to be undertaken jointly with the Philippine Army Housing Board and the Armed Forces of the Philippines Savings and Loan Association Inc.
The Department of Agrarian Reform (DAR) granted Planas’ application on Nov. 29, 1990 with certain conditions, including the payment of "disturbance compensation" to the affected tenants and farm workers, and that the area should be developed at a rate of at least five hectares per year.
On Sept. 5, 1996, the Housing and Land Use Regulatory Board issued the development permit, but prior to this, Planas had sought an extension to complete the project.
Planas eventually got an inextendible period of two years, which lapsed on June 18, 2000. The legality of this extension, however, was questioned.
Planas subsequently sought another extension of five years, but a DAR task force recommended against granting it. The DAR wanted the lots to be immediately acquired and distributed to qualified farmers.
With the DAR’s denial, Planas raised her request to Malacañang which rejected it, too.