Minister Clarifies Airport/Mail Centre Relocation

September 29, 2017

Minister Lovitta Foggo addressed questions raised related to the Bermuda Post Office Mail Processing Centre vacating its publically owned premises at the airport to relocate to a privately owned facility at Mills Creek.

Minister Foggo said: “As I stated in Parliament on Friday, September 22, the move is required as a result of an Agreement entered into by the former Government, the Bermuda Airport Authority and Project Co [Skyport] which requires the government to pay rent for a building that it owns.

“The agreement requires the Post Office to move by September 30 or pay rent at market rate, which could be in the region of $30,000 per month, during the months of October, November and December.

“If the Post Office has not moved by December 31 then the government must also pay a one-time penalty of $600K and continue to pay monthly rent going forward. If the government stays at the Airport after it pays the penalty, there are other consequences as well.

“The airport project scope will change. Aecon will be released from its obligation to develop and construct the Prefunded Cargo Facility. Aecon will also not have to undertake any maintenance or repair work for the space occupied by the Post Office.”

Minister Foggo added: “So to be clear, paying the $600K penalty, having to continue to pay rent for a government owned facility, and increasing the cost of the airport project overall as a result of an Agreement made by the former government is in real terms, too costly a proposition.”

“Efforts continue towards vacating the space in a timely fashion.”

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Comments (12)

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  1. Seniors says:

    How much is the rent at the privately owned location, and who owns it?

    • Reuben says:

      I read that it will cost $360,000 for the year. it would be interesting to know who owns it as well as who made the choice to rent.

      • wahoo says:

        Mill’s Creek floods all the time how can you relocate an essential service to a place that is below sea level? I bet the property rented was sold last week to a certain Mr. X for $400,000.00.

      • There needs to be an investigation on this former Government.
        They undersold a prime piece of proprty (Harrington Sound Post Office) to whom? Friends and Family?
        Confiscated Crime funds gone missing.
        The $300,000 for buses that Fahy entrusted with de guy that bought a mansion and top of de line car in England, etc…………

  2. dae says:

    this gomint cant do anything as there is no money we knew that up front so now all they can do is blame backwards and bash Americas cup the biggest sporting event to arrive on our shores bitc. bitc.. moan we went up now all we have to do is go downhill again and that’s seems to be the goal

  3. nerema says:

    This is a Mickey Mouse government.

  4. somuchless says:

    Lovitta speaks just to hear herself. Pathetic

  5. jt says:

    So, to be clear, the ‘rental’ rate is $0 and the penalty fee is $0 if the post office is relocated by Sept. 30th.

  6. wahoo says:

    Sorry, almost forgot, no long term lease since post offices will be obsolete in five years. Hmmmm what else will be obsolete in five years? Get a lot of popcorn, it will be a long five years.

  7. legalgal says:

    Clear as mud. Are they saying they are amending the contract with Aecon? Someone needs to make sense of this before additional contracts are entered into with more penalty clauses or no proper tender process or unnecessary penalties incurred. Surely the shade government can explain?

  8. bermuda beauty & brains says:

    My only concern is, why mills creek? Thats so far away from the original location! There wasn’t anything available over southside??