Minister on Southside Lottery Homes Delay
Minister David Burch updated on the progress of the Harbour View Village development at Southside, saying the construction has been delayed and that “Disappointingly we will not make our hoped for occupancy before Christmas with the current schedule for delivery of the units in all four buildings being the first quarter of 2011.”
The groundbreaking ceremony for the construction of the homes, which are due to be sold for $199,000, was held in May 2007.
Minister Burch said that “immediately at ground breaking a 540,000-gallon underground storage tank – left by the Americans – containing oil and sludge – that no one knew were there was discovered. Its removal and remediation in addition to delaying the start of construction also cost about $500,000 – an unbudgeted cost.” He also said the “severe winter weather last year has contributed significantly to the current delays.”
Saying that “in spite of the economic challenges” the Bermuda Housing Corporation assisted by Government have devised :creative ways to keep it alive,” the Minister said “we fully recognize and share in the disappointment felt by the lottery winners but equally look forward to the day, very soon, when we can welcome them to their new homes at Harbour View Village.”
The full statement follows below:
Madam President, I am pleased to provide an update on the current status of the Harbour View Village Lottery Homes at Southside, St. David’s.
Much speculation has occurred in recent weeks about this project in spite of the significant progress on the four buildings currently under construction at the site. In any case, as has been my custom over the three and a half years of this project – the owners are personally informed before any public announcement.
Madam President, last evening I met with 50 of the 84 families that will eventually own a home at the Harbour View Village. Those who were unable to attend will receive a written update from the Corporation.
To remind the Government assumed responsibility for this project following the collapse of the private organization Bermuda Homes for People.
Madam President, you may recall that we first had to move across the street because the original site was subject to flooding and there were tenants who were refusing to move … and they are still there!
We began this journey on May 31, 2007 – some 3 years and 7 months ago with a groundbreaking ceremony at the site.
Madam President, immediately at ground breaking a 540,000-gallon underground storage tank – left by the Americans – containing oil and sludge – that no one knew were there was discovered. Its removal and remediation in addition to delaying the start of construction also cost about $500,000 – an unbudgeted cost.
The severe winter weather last year has contributed significantly to the current delays.
Madam President, I will not chronicle every hurdle here but suffice to say we persevered as we believe we should honour the commitment to provide home ownership to Bermudians, albeit in this case – not a promise we first made.
Madam President, I must note that there have been numerous occasions when this project could have completely failed through lack of funding, various site challenges and rising costs. But we were not deterred and sought every means to bring it to fruition.
The cost of this project far exceeds the $199,000 purchase price each family is paying but is subject to significant subsiding by Government through the Bermuda Housing Corporation.
Madam President, in spite of the economic challenges over the life of this project – rather than give up – the Bermuda Housing Corporation assisted by Government have devised creative ways to keep it alive. In this financial year sufficient funding to complete the entire project was not available – so we proceeded to build these first 58 units and shall use the proceeds from those sales to fund the remaining two buildings that will house another 26 families. Fifteen of the original 99 families have opted out of this project.
Disappointingly we will not make our hoped for occupancy before Christmas with the current schedule for delivery of the units in all four buildings being the first quarter of 2011.
Madam President, last night’s meeting was for both groups of winners – those whose homes are built and the finishing touches are being applied as well as those whose homes will be built in the next phase. The meeting was extremely positive with some families expressing their understandably extreme disappointment at the current delay but with all expressing their appreciation for the commitment to delivering this project.
In order to assist those seeking finances from our financial institutions – last month we arranged for representatives of mortgage departments to tour the site so they have firsthand knowledge of the product they are being asked to support.
I must confess that we have not been as diligent in providing regular updates to the owners as we should and as such I have directed that they will now receive weekly email blasts of progress.
Madam President, we fully recognize and share in the disappointment felt by the lottery winners but equally look forward to the day, very soon, when we can welcome them to their new homes at Harbour View Village.
Thank you, Madam President.
To: Minister David Burch,
In response to your official statement to the Senate, I would like to see an official version from the UBP/BDA on Bernews that states “how they will have started and commenced the project”
it’s been a long day, going to retire.
Anyone who has carried out any home improvement (or tried to build a house) in Bermuda appreciates it take longer than anticipated.
Why?
Neither the UBP nor the BDA were responsible for managing this process so why should either be asked to provide the clarification you’re requesting.
If the PLP are unable to undertake capital projects in a timely and cost effective manner why are you attempting to deflect attention away from their readily verifiable and clearly evident shortcomings (Berkeley, TCD, Dockyard, Courthouse, etc. for further examples) by asking opposition parties to say what they would have done differently?
Either the PLP know what they’re doing and can deliver or they don’t. The +$100m of overages cited by these few projects would indicate they don’t.
This was a hair brained scheme from day one. I predict that the problems are far from over. At best they are creating a ghetto.