By Jenniffer B. Austria

The Philippine Economic Zone Authority has declared a portion of the former San Lazaro racetrack in Sta. Cruz, Manila, owned by Manila Jockey Club Inc., special economic zone.

Manila Jockey said in a disclosure to the stock exchange that the 74,244-square meter property, to be called San Lazaro Tourism and Business Park, would be developed into a tourism economic zone with an information technology component.

With the Peza declaration, locators within the special economic zone will be entitled to fiscal and non-fiscal incentives, including income tax holiday or exemption from corporate income tax for four years, extendable to a maximum of eight years. After the income tax holiday period, locators also have the option to pay a special 5 percent tax on gross income, in lieu of all national and local taxes.

Property giant Ayala Land Inc. in partnership with Manila Jockey is currently developing several portions of the economic zone, especially residential projects and commercial complexes, including office buildings catering to business process outsourcing companies.

A BPO building consisting of 14 stories was recently completed.

Meanwhile, subsidiary MJCI Investments Inc. will construct a hotel within the special economic zone.

MJCI Investments, formerly called Aries Prime Inc., recently obtained license from state-owned gaming firm Philippine Amusement and Gaming Corp. to operate a casino.

MJCI Investments plans to initially operate 200 slot machines and 10 gaming tables. The company did not identify the location of the slot machines and gaming tables.

This is the second gaming license to be granted to racetrack operator.