Grand Atlantic Condos: “Take A Step Back”

March 8, 2013

Saying that the Government must consider the consequences of putting 78 units on a housing market which already has a surplus of empty apartments, Minister Wayne Scott said the Government has concluded that the “only responsible thing to do is to take a step back before any further decisions are made.”

The Grand Atlantic Development is located in Warwick, and comprises of 60 two bedroom/one bathroom homes and 18 three bedroom/two bathroom homes. Prices range from $495,000 for a 2 bedroom home, up to $665,000 for an ocean view 3 bedroom unit.

A year ago former Minister Michael Weeks announced that 100% financing will be offered to qualified first-time home purchasers at the Grand Atlantic Development, however six months after that it was confirmed only one unit had sold.

Minister Scott stated: “After significant review and assessment the Government has concluded that the only responsible thing to do is to take a step back before any further decisions are made. The reality is that the Bermuda Housing Corporation cannot afford the financial strain.”

The Minister also said the Government “must also consider the consequences of putting 78 units on a housing market which already has a surplus of empty apartments.”

“Before this action is taken the responsible thing to do would be to publish a Request For Proposal (RFP) which would be open to any person or entity, local or international, in order for the Government to determine the best use for the property going forward.”

The Minister continued: “If an alternative use is selected for the property, preference would be given to a project that is financially beneficial to Bermuda as well as one that creates employment and has a positive social impact.”

The Minister also addressed the issue of the residents currently residing at the property, and/or others who may be interested in purchasing, or those who are at different stages in the process of acquiring a Unit, by indicating that the “Government would put all sales on hold for the moment.

“If another use is determined for the property Government will consider this issue on case by case basis, in a mutually beneficial and transparent manner,” said Minister Scott.

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Comments (41)

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  1. Xman says:

    Hey Govt.
    How about $380,000 for the side facing the north
    and $420,000 facing the south shore.
    Also – $8000 down payment . Because these are the figures that will appeal to
    Most Bermudians looking to buy a home – for the first time.
    I bet they will sell now.
    For heavens sake don’t let them get in the hands of Codwells Bankers – the price would go up to a million dollars each.
    It’s all about the money!

    • Black Soil says:

      Fer Christ’s sake OBA…just sell the damn condo’s at cost to first time buyers with stipulations on reselling so we don’t have opportunists buying cheap and then selling at a higher (market) price. This is not rocket science. AND GET GOVT OUT OF THE REAL ESTATE DEVELOPMENT INDUSTRY – THE GRAND ATLANTIC IS SYMBOLIC OF PLP STUPIDITY…LETS NOT MORPH INTO OBA STUPIDITY.

    • OBA IS FULL OF IT THEY ARE GOING TO PUT ALL THE NON-BERMUDIANS UP THR FIRST …. they need some wr to put all the new ones coming in to work at thr homes, shops, gass stations why you think all the GP cars are SITTING going rusty they are all waiting for thr drivers (LMAO) MOST OF THEM OBA FOOLS HAVE HOMES THEY DONT GIVE A HOOT ABOUT US ….I say $10, 000 down rent to buy ….

  2. martin says:

    GOOD! for the time it is on hold change the color to something brite and reflective of the advertised bermuda so not to be that much of an eye sore!

  3. Mad Dawg says:

    Another expensive mess to sort out, courtesy of the incompetent PLP. I am sure that if the full details of this became public it would be completely clear why it was built, and who benefited financially.

  4. pebblebeach says:

    Request for Proposals for alternative use by locals and internationals…I am sorry but you the OBA are just as bad as the PLP with your put on hold and accept request for proposals..

    Lower the darn prices and make them affordable to first time home buyers, banks need to loan money at reasonable rates with good credit policies in place and you the OBA need to quit trying to prop up the real estate market with its already over inflated housing prices…

    The PLP’s intention was good in a sense but greed took over with unrealistic prices for units carved out as affordable houses….

    • I jus don't understand says:

      do you not understand the meaning of housing glut. sell the damn units to whomever wants them, timesharing , tourists accomodations, private sale to locals or international sales should be allowed. This bermuda for bermudians shyte has to be stopped.

    • jt says:

      If you don’t investigate the best options available how do you know the best choice was made? We suffered through 14 years of knee jerk, poor choices and now you want another one? There is no rush now, look at all the options, make the best choice.

      • Autumn Fire says:

        Actually, all the options will affect their relevant industries:

        1). Sell the units as low cost housing – realtors and home sellers will take a hit on the existing home market
        2). Rent at low cost – the existing realtors and landlords will take a hit of existing vacant rental properties
        3). Market as tourist units – the existing hotels and guest properties will take a hit in an already low market
        4). Sell/rent them for seniors – no elevators and competition against existing or proposed operations

        So…what’s left to consider, since the Government needs to generate income to satisfy the debt…how about:

        1) Sell them at low costs locally, anyway
        note: to compensate the current real estate market, the Government needs to just open up the market for home sales (not land) to everyone for everyone (Bermudian and non-Bermudian; locally and internationally) only for the next 9 – 18 months so the pool is wider for buying and selling.

        - you have a property to sell, sell it to whomever you want, no restrictions, just to fix the market and consider retuning the current rules/restrictions after December 2014 i.e. January 2015, revise the rules…

        Also, before we pro-Bermudian land preservers start yapping about loosing out to our future generations, not every Bermudian will sell their property, but if they do, they have the right and freedom to do so for a short period of time, but for now, we need to return Bermuda to it’s state of prosperity for us all.

    • blankman says:

      pebbles, you do understand that putting these units on the market at greatly reduced prices will only drive down the overall market and hurt anyone that’s currently trying to sell their home.

  5. Orbit says:

    Don’t give greedy Lopes any more $$$$$$

    • BendEm Like Beckam says:

      ??? He was the contractor fool. Hired by government! It was their project not his!

      Was his bid millions of dollars over budget like PROACTIVE was? NO! Imagine if they had hired them again. Who was the real gready PIGS.

      • Fed Up says:

        You really should read up before you make comments. He made a deal with the then Government that basically he would build them and the then government would buy them back. So he is owed alot of money but guess who agreed to the whole business???? Remember you already have a family who has invested in a unit so you have to take them into consideation before any changes are made. I do agree to lowering the price.

  6. Jus' Askin' says:

    There are people looking for apartments. So the reason there are empty ones is do to pricing.
    Let’s bring these over inflated prices down ;-)

  7. Victor says:

    My understanding is the General Contractor is still owed over $10,000,000 by Government – he cannot be a happy camper with this decision.

    • Black Soil says:

      I don’t think your understanding is correct. Lopes has been paid in full. The BHC is holding the smelly bag.

  8. Navin R. Johnson says:

    I would guess he is only owed if he builds the rest? problem with a glut is dropping the prices to rock bottom will drop the price of anyone else looking to sell a decent condo…..and who was the rocket scientist who bought the only one?

    • Fed Up says:

      There are no more, he just threw that out their recently to see if he got a response from Government, not this time buddy

  9. 1minute says:

    Just get a Real Estate company to rent them out to locals or short term to tourist. Perfect place if Arnolds opens. There would be a supermarket, restuarant and a beach in easy walking distance

  10. HeyBye says:

    Take the hit now,up front and demolish them.
    They will forever be a drain on tax payers money for maintenance and up keep.Additionally there is the liability issues and related expenses down the road; when they collapse along with the eroded cliffs, into the ocean below.

    Turn it into a green park,beautify the Bermuda product for Bermudians and Tourist.

    • Verbal Kint says:

      Every time I read about these things, it reminds me of a story in Tom Wolfe’s book “From Bauhaus to Our House”. He tells of a factory-like building in East St. Louis, built as a housing project for the disadvantaged. The people who were forced to live there hated them. They were a manintenance nightmare for the city. A town hall meeting was held at which city officials asked the occupants for methods to improve the buildings. Wolfe says, “That’s when the chant began,’Blow ‘em up! Blow ‘em up!’” And that’s what the city did.

    • DarkSideOfTheMoon says:

      So demolish them before they fall into the sea, but make a park that will fall into the sea?

      • HeyBye says:

        Better to have a lawn and a few trees go into the ocean rather then buildings occupied by people. Astwood Cove Park would be an example.
        The tax payer will be slapped with law suits for replacement of property of the occupants.In addition, to all of the money spent to up keep the property, will all literally be down the drink.

        Better for the tax payer to cut their losses now.
        Nothing like sinking good money into a literally,sinking asset.(puns intended)
        From a geological stand point, the cliff face is collapsing. That is no election ploy, just fact.

    • Fed Up says:

      And the family that has already invested, what are they supposed to do.

      • HeyBye says:

        Gov would buy them out or put them into a comparable accommodation.
        Cheaper then spending tax payer monies, maintaining and rebuilding the property for years to come.

      • Verbal Kint says:

        Good question. No idea.

      • Pastor Syl Hayward says:

        My understanding is that the family that is living there is renting. They did not buy

    • You pay for it fool!!!!

  11. Verbal Kint says:

    Where does this leave plans to reinforce the seawall? Can anyone offer insight if they know the answer?

    • DarkSideOfTheMoon says:

      It doest need reinforcement, that was just a ploy for the election.

      • Verbal Kint says:

        Then why was money allocated to strengthen it?

      • Fed Up says:

        It certainly does need reinforcement or don’t you know anything about shoreline erosion. Education is the key

  12. me says:

    not selling…..Rent them out

  13. Wow says:

    I’d like put my fist in ORBIT mouth!! Gilbert lopes has done a lot for bermudians! Black and white!! He’s NEVER tailed the government like others have! No your facts before you all talk $hit! Just a bunch of rich stuck up white people complaining! fYI I’m white and proud!

    • O.B. says:

      Bermudian mentality. Sad. (I’m Bermudian too)

    • Verbal Kint says:

      The Bermudian Gilbert Lopes has done the most for is Gilbert Lopes. He had a gravy deal to build these monstrosities with a guaranteed buy back. If it wasn’t such a gravy train for Lopess, why didn’t he spend his resources to finish the hole in the ground he made on Park in Hamilton?

  14. Opressed says:

    Tear them down, Bermuda cannot afford to have a ghetto of this size anywhere. Knock them down and plant it out. We got screwed with the whole deal anyway, might as well bite the bullet.

  15. .am says:

    Furnish them with stuff from ikea and rent them out to tourists. If and when they do drop into the ocean, better it be someone’s luggage rather than their entire life.

  16. Second says:

    Time sharing or seniors