[2] The theme park was conceptualized by then-Pampanga Governor Bren Guiao, then-Tourism Secretary Jose Antonio Gonzalez, and then-Center for International Trades, Expositions and Missions Director Mina Gabor[3] It was opened on December 11, 1990 by then-president Corazon Aquino, the Paskuhan Village showcased small and giant lanterns and other Christmas-related items in an effort to support local craftsmen and entrepreneurs.

[4] During 1998, then-First Lady Amelita Ramos attempted to recreate the village as part of the "Florikultura '98" project of the Department of Tourism, but the plants withered and died the year after.

'Provincial Council') of Pampanga filed a resolution to establish a branch of Casino Filipino within Paskuhan, a plan opposed by the religious sector, militant organizations, and a parent–teacher association.

[11] The ruling allowed Gonzalez' intervention in the compromise agreement between San Fernando City and Premier Central, Inc.'s P939 million sale of Paskuhan Village.

The "deed of donation" transferred 5,000 square meters of the 9.3 hectares sold to Premier Central, Inc. and a 2-story building to San Fernando, and a company would construct an amphitheater.

Gonzales was granted the right to file complaints on the Tourism Infrastructure and Enterprise Zone Authority sale decision of Paskuhan Village to Premier Central Inc. (PCI) in 2014 for P939 million.

[12] Following the annullment of the sale to Premier Central, San Fernando Mayor Edwin Santiago advocated for the revival of the Paskuhan as a Christmas-themed park and the return of the Giant Lantern Festival to the venue; the city's plan to acquire the property was still being deliberated at the time.