Grand Atlantic RFP Selection Process Complete

February 24, 2017

The Ministry of Public Works, on behalf of the Bermuda Housing Corporation [BHC], announced that the “selection process as it relates to the Grand Atlantic Condominium - Request for Proposal [RFP] has been completed.”

Grand Atlantic was planned as a housing development, however only one unit sold in the first six months, and in 2014 the Government announced it will be taken over by Caribbean-based MacLellan & Associates who planned to turn it into a condo hotel named the ‘Bermudiana Beach Resort.

That did not come to fruition, hence the Government issued another RFP for the 78-unit property, and this week they announced that MacLellan & Associates’ “business plan has been modified to produce a greater financial benefit for the Bermuda Housing Corporation in a joint venture and allows for more cost efficient project financing.”

Grand Atlantic Bermuda Feb 23 2017 (1)

“The RFP was re-issued on May 2nd 2016 and subsequent submissions assessed on their merits based on the published criteria in the RFP, the Ministry said.

Major Barrett Dill of the BHC said, “These criteria highlighted the tangible impact of the proposed developments on our community from a social and economic impact, with an emphasis on job creation opportunities and the return on investment for the Bermuda Government.”

The Ministry said, “In order to accommodate occupational needs as it relates to the numerous stakeholders of the Americas Cup and to be fully supportive of Bermuda’s role in the 2017 event, the published RFP specified that development can only occur after 1st September 2017, following the successful conclusion of the 2017 America’s Cup 35 racing series.

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“The decision to select the Bermudiana Beach Resort team [BBR], led by resort specialist Robert MacLellan of MacLellan & Associates, was made following the due diligence period as the proposed condominium hotel development was seen to provide the best value for money and was most closely aligned with the Government’s goals for increasing tourism accommodations.

“MacLellan & Associates’ business plan has been modified to produce a greater financial benefit for the Bermuda Housing Corporation in a joint venture and allows for more cost efficient project financing.

“The developer has received a commitment to source conversion funding from the same finance house which offered funding for the Bermudiana project on the joint venture structured basis in early 2016 .

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Robert MacLellan said, “The opportunity to create an economically sustainable new tourism model, which can attract external investment, is exciting because the physical structure of the buildings already exists and Bermuda urgently needs new mid market hotel inventory.”

The Ministry said, “A condo hotel is defined as a development which is legally a condominium but which is operated as a hotel, offering nightly rentals with front desk and resort leisure facilities.

“The condominiums will be sold as vacation homes with a maximum of 90 nights per year owner occupancy. When owners are not in residence, the design allows the units to be rented as hotel suites and rooms and owners benefit from that income stream.

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“The day to day operation of the resort’s restaurants, bars and spa will be undertaken by local management with several support services, including laundry, outsourced to local companies. The resort operation and marketing will be supported by an international boutique hotel brand.

“Final negotiations are ongoing with two interested companies and a final selection will be made this month. This arrangement will enable the Bermudiana Beach Resort to benefit from an international reservations system and a strong brand loyalty programme. The brand affiliation also facilitates the resort being marketed by sales offices and via over 5,000 group hotels around the world.

“MacLellan & Associates is a Caribbean-based hospitality, tourism and leisure consultancy firm. Mr. Robert MacLellan, who first came to Bermuda to work in the hospitality industry over 30 years ago, has assembled a local team to facilitate the repurposing of the existing property.

“Currently architectural firm OBMI and realtor Coldwell Banker Bermuda Realty have been appointed as team stakeholders. Other local companies and service providers will be appointed in due course.”

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Comments (22)

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  1. Meh. says:

    I misread this right? They did an RFP in 2014 – selected a contractor that did sat on their hands so they had to redo the RFP after letting the property rot for 2 years and they ended up selecting the same contractor?

    • Bill says:

      I can’t believe what they are gunna do to the beach. 1. It is messing up the natural beauty of the beach 2. Destroying the cliff face to build stairs wtf? Which will then increase the erosion to the cliffs that are supporting the buildings. 4. Who is gunna walk down and up all those stairs. 5 The next major hurricane will destroy it

      • Black Soil says:

        I cannot believe the PLP built these expensive, ugly units over the OBJECTIONS of the Bermuda Housing Corp. More PLP fallout to absorb. And how many fools will want to vote these clowns back in.

  2. Jiggs Bda says:

    It would appear the original financing fell through not too long after the time of the furlough day march.

    Sometimes when you march you interfere with the progress you think you are making.

    We have been given a second chance to attract investment, let’s try to be more positive.

  3. Vote for Me says:

    “MacLellan & Associates’ “business plan has been modified to produce a greater financial benefit for the Bermuda Housing Corporation in a joint venture and allows for more cost efficient project financing.”

    Please… give us the financial details of the arrangement. Is this more smoke and mirrors with the government proving a financial guarantee or otherwise accepting some of the financial risk of the project?

    We accept that this is an election year but the OBA must realize that ‘what we do in darkness will be revealed in the light.’

    • Um Um Like says:

      Remind us, which political party created this mess?

      • aceboy says:

        Exactly. The PLP’s great one decided to build this disaster over the objections of everyone, including his own advisors, and now this is somehow the OBA’s fault? LOL. The revealing is coming by all accounts, but it is not the OBA’s deeds that are being revealed.

  4. Vote for Me says:

    PS – what happened to the grand promise that the units will ‘soon fall off the nearby cliff’?

    • Bill says:

      Shouldn’t have built them in the first place though what a dumb idea. But someone got PAID. The cliff isn’t that strong, go down there after a major hurricane. I’m guessing they are hoping to make their money back before they fall off the cliff (Guessing 20 years down the road) They couldn’t sell them either so this is the next best thing.

    • Zevon says:

      You didn’t buy one though, did you.

  5. property owner says:

    Running up to the last election PLP was blasted for this project as it was deemed unsafe now it’s perfectly fine oh how I hate politicians a bunch of lying creeps

    • Trump suppprter says:

      I don’t think it’s a matter of safe or unsafe. But they are there now, should the OBA Just knock them down. Or make the best of a bad situation.

      • Hurricane says:

        @Trump supported, you have got to be kidding me; it definitely is a question of if they are safe or unsafe. There now or not, if indeed it’s confirmed that they unsafe, there is no way they should be used as any type of residential units.

        I guess I shouldn’t be surprised at your comment though, not if you support “that Trump”

        • Trump supporter says:

          So knock down then… I was referencing that they are here now, brain surgeon.

          • Zevon says:

            They’re ugly. They always were. A waste of money. Badly designed.
            The only people who made out were the builders, the property owners who sold the land, and the oveseas bankers the PLP borrowed the money from.

    • aceboy says:

      Would you buy one? I wouldn’t. The PLP were rightfully blasted. I continue to do so. It was a stupid idea to begin with.

    • Earth watch police says:

      How is any of this the oba s fault didn’t the plp build this as low cost housing wtf

  6. Trump suppprter says:

    Thought Zane was interested!

  7. Rasta says:

    What an ugly development and a reminder why to not vote PLP.

  8. Terry says:

    Only in Bermuda.