Second Extension Given On Grand Atlantic MOU

November 14, 2014

[Updated with videos] Grand Atlantic developers MacLellan & Associates have been granted a further 120 day extension to the MOU, Minister of Public Works Patricia Gordon-Pamplin said this morning [Nov 14].

Earlier this year MacLellan & Associates entered into an MOU with the Government to “upgrade and reposition” the Grand Atlantic development, with the developers planning to turn it into a condo hotel named Bermudiana Beach Resort.

Minister of Public Works Patricia Gordon-Pamplin:

The MOU was originally due to expire on August 14th 2014, and the developers were granted a 90-day extension to the MOU to ”allow the strategic planning process to continue unabated for the repurposing of the Grand Atlantic Development.”

Speaking in the House of Assembly today, Minister Gordon-Pamplin said the additional 90-day period expired on November 11th, and as “the deadline approached, and despite best intentions, there were a few matters that were still to be resolved.

“Honourable members will note the decision by the Planning Board to require further information on the location of the pool as it was deemed to be too close to the cliff edge. This matter was concluded with a satisfactory granting of the necessary building permit.

“Most notably, the question of vacant possession of the development and the relocation of the lone family still residing in the development has, until now, delayed some of the negotiations.

Area MP Lawrence Scott

The Minister continued, “I am pleased to announce, however, within this past week, the Government has reached a mutually agreeable solution with the current (single) unit owners at Grand Atlantic. The family has agreed to transfer out of the Grand Atlantic property to another identified unit once all the conditions are met with the Developers.

“With this very recent resolution only a few minor conditions remain to be satisfied which can be accomplished in a brief extension period. It has been agreed that MacLellan & Associates be granted a further 120 days in order to ensure that the project is well positioned to provide jobs, opportunities for local and overseas investment and a brand new Tourism concept for Bermuda.

“While it is not expected that the outstanding matters will require the full 120 days, it is my expressed belief that being able to have all issues resolved without the pressure of another deadline will bode well in ensuring that Bermuda and the developers will achieve the best possible outcome.

“This project is still projected to become Bermuda’s first condo-hotel tourism offering.”

The Minister’s full statement is below:

Mr. Speaker, I rise this morning to update the Honourable House on the situation concerning the Grand Atlantic Hotel Development.

Following the announcement earlier this year that Caribbean based hospitality, tourism and leisure consultancy firm, MacLellan & Associates, had submitted a successful bid to acquire the development property of Grand Atlantic for conversion to a condo-hotel property, the company was granted a 120-day exclusivity period to advance the project. That period expired on August 14, 2014.

The due diligence process associated with the repurposing proposal included a number of conditions imposed by both parties. On August 14, 2014, there were some issues that were still unresolved, and upon request of the BHC and the developers, a further 90-day extension was given to allow matters to progress to a satisfactory conclusion.

Mr. Speaker, the additional 90-day period expired on November 11, 2014.

As the deadline approached, and despite best intentions, there were a few matters that were still to be resolved. Honourable members will note the decision by the Planning Board to require further information on the location of the pool as it was deemed to be too close to the cliff edge. This matter was concluded with a satisfactory granting of the necessary building permit.

Most notably, the question of vacant possession of the development and the relocation of the lone family still residing in the development has, until now, delayed some of the negotiations.

Mr. Speaker, I am pleased to announce, however, within this past week, the Government has reached a mutually agreeable solution with the current (single) unit owners at Grand Atlantic. The family has agreed to transfer out of the Grand Atlantic property to another identified unit once all the conditions are met with the Developers.

With this very recent resolution only a few minor conditions remain to be satisfied which can be accomplished in a brief extension period. It has been agreed that MacLellan & Associates be granted a further 120 days in order to ensure that the project is well positioned to provide jobs, opportunities for local and overseas investment and a brand new Tourism concept for Bermuda.

While it is not expected that the outstanding matters will require the full 120 days, it is my expressed belief that being able to have all issues resolved without the pressure of another deadline will bode well in ensuring that Bermuda and the developers will achieve the best possible outcome.

Mr. Speaker, this project is still projected to become Bermuda’s first condo-hotel tourism offering. MacLellan & Associates have completed their engineering and construction due diligence for all aspects of the site development, as well as progressing the marketing, management and operation of the hotel component.

MacLellan & Associates would like to see conversion works underway early in 2015.

Thank you Mr. Speaker

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Comments (7)

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  1. San George says:

    People – it’s not going to happen. No bank is going to lend money for a hotel project in Bermuda. MD will be lucky if his project comes off before he dies. A hotel investment in Bermuda is not a wise business decision. It’s just business.

    • Lois Frederick says:

      Watch them prove you wrong over the next 3 years. Glad you are not running things.

    • The Fact says:

      I somewhat agree with your statement. A NEW Hotel project is not financially feasible with the construction cost, all the red tape, and decrease in tourist numbers. Our product needs to be updated in order to attract the masses.

      With that said, a hotel project to renovate or purchase something already constructed at a discounted price will be much more feasible. Look at Newstead. This may get traction faster then you think.

  2. If not mistaken, I do detect a somewhat desire coming from M. P. Lawrence Scott, to cross the floor…If he is anything like his father then I really can’t see an individual who is well raised as this young man to want to stay with the Progressive Labour Party much longer and I do believe he can serve the people of Bermuda better as an Independent or as a member of the One Bermuda Alliance team…

  3. Tree Planter says:

    I would Like to know what is the real area of property they are talking about for this development. Would they want part of Southlands and the beach too I am just asking.