BEST: Terminate Broken Park Hyatt Agreement

September 21, 2012

The Bermuda Environmental Sustainability Taskforce [BEST] said they wish to lend support to UBP MP Charlie Swan’s assessment that the “terms of agreement between Bermuda and Mr. Carl Bazarian for the building of the Park Hyatt Resort in St. George’s have not been adhered to. Given that construction was to have begun by August 2012, which has passed, the agreement should be terminated.”

BEST said: “We feel it is an asset that Bermudians, particularly those resident in St George’s, are being deprived of while it is tied up in an agreement with a delinquent partner. We believe that there are other possibilities/potential for the area on a scale that is more in keeping with the character of St George’s.

“These could include a smaller hotel such as the boutique hotel proposed for the Town, as well as the rebuilding of a club-house for the St. George’s golf course and the small facility on Catherine’s Beach, both of which were destroyed prematurely.

“The first step for any hotel development to take place at the site is to untangle Bermuda from the current, unfulfilled agreement. We support that step,” concluded the statement from BEST.

Charlie Swan referred to this property as “one of Bermuda’s assets” in a recent TV interview. He was discussing the ‘assets’ Bermuda has, saying as they are limited they should be harnessed and utilised to the best benefit of Bermuda and Bermudians.

He said a key term in the lease governing the Club Med property has been breached [that being the time by which construction is to have commenced] and the land has sat idle to the detriment of Bermuda and Bermudians. Mr Swan suggested the lease should be cancelled and put out to tender again.

The latest plan for the property — which closed in 1988 — was to construct a Park Hyatt Hotel. At a Town Hall meeting in October 2010, Mr Bazarian said that construction would begin in late 2011.

This plan is the latest of a string for the property which has not been used as a tourist resort for almost 25 years. Prior to closing in 1988, the property was a Holiday Inn, then changed into Lowes, and then taken over by Club Med.

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Comments (28)

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  1. Vulpes says:

    BEST – you are playing into Bazarian and his local partner’s hands – this whole deal has only ever been about flipping the property for a profit. Who better than back to Government, especially when who is still really running things is taken into account?

    • ? says:

      lease agreement terms not met. meaning an invalid lease, am i wrong?

  2. San George says:

    Anyone who would invest in a hotel in Bermuda has lost their senses. There is a hotel for sale on Harbour Road owned by the Bank of Butterfield – they would love to lay it off. The remaining hotels are having a tough time making it. Don’t believe the hype.

  3. ABM says:

    Great ideas and great proposals, but if Bermuda was to take on the responsibility of building this ourselves, how could we afford it given our current level of debt?

  4. Amazed says:

    If these concerned citizens really wish to help they can go find an alternative builder who is looking to invest. The expiration of the terms now mean that we are free to look for alternatives, but terminating the present agreement without an alternative in place serves no purpose!

  5. US Hotelier says:

    Sorry, that assumes there are alternative developers out there looking to invest the type of money it takes to actually develop what people want here. As someone in the business, I can tell you they are few and far between for greenfield sites in a seasonal, offshore tourist location with high operating costs. Oh, by the way, has anyone noticed that the world economy has tanked and that this type of project is at the bottom of any investor’s list?

    It bears considering that Mr. Bazarian is the one person that has put money and reputation on the line and carried this project further than anyone in the past has, as well as (light years) further than any other current project in Bermuda (is anyone even close to Planning approval?). All despite an economic meltdown. It is the easiest thing in the world to shoot darts and express doubts, but it seems to me that if this project is truly as important as people say it it, people should be asking how they can help Mr. Bazarian rather than sitting back and playing the cliched, naysayer role.

    • Verbal Kint says:

      All of that is well and good, but Mr. Bazarian is in violation of the terms of his lease. Mr. Bazarian has been “helped” more than many people consider fair. He has “carried the project far”, but he hasn’t built anything and the terms of his lease have expired. Is he to be allowed to hold on to the property indefinitely to the exclusion of others?
      What is the status of Dodwell’s group and the lease on the 9 Beaches property? What are the terms of that lease and have they been adhered to?

    • Im just sayin says:

      I don’t think anyone is doubting the Developer’s commitment to the project, but if there is/was a material breach of Contract (like not starting construction by a mutually agreed upon date) there is a issue.

      As a hotelier(US or otherwise)would you not expect to hold someone to their contractual obgliations? Hmmm say a client who contracted a rate for 10,000 room nights a year and only purchased 1,000? I’m pretty sure you would not honor the previous rate would you?

    • carobbermuda says:

      brilliantly said!!

  6. i gotta be me says:

    Nobody is going to invest ANY money in the Island until after the election, and then, only if the PLP are out.

    • swing voter says:

      I think your right. I’ve overheard conversations when I recently got upgraded to first class. Too many slippery palms held out over the years. Investors don’t like to be strong armed

  7. US Hotelier says:

    This is where you have to decide whether you are going to be flexible or rigid. Very few resort projects that have ever been delivered according to plan – timing or budget. In fact, I don’t know of any. So it really comes down to the person/group, and if you think you have the right person then you need to be flexible and commit to them. And if it means a few lease extensions, then so be it. You can certainly take the rigid approach, but with a process as difficult and ugly as real estate development is, you are probably more likely to scare away the right developer than you are to end up with a finished product you are happy with.

    • Im just sayin says:

      Didn’t this Developer take the “rigid approach” when the golf clubhouse/course and the beach bar were closed due to the “start of construction” some years ago? Businesses that provided jobs and gave locals & tourists alike options on dining and enterainment that is now lacking in St. George.

    • Verbal Kint says:

      I understand all that, but the government here has put the people in the position of being held hostage by the developers. Developers have a responsibility in that, too. Lease deals are out on this island to Hell and back and the properties are not being built. Public land has been signed away to people to sit on until they see fit to build. That day MIGHT never come, meanwhile Dodwell’s group has a very cloudy 240 year lease on Daniels Head just as one example. Bazarian signed the lease. He needs to s**t or get off the pot. Any extension, at this point, has to hold him to a higher standard.

  8. Cedar Beams (Original) says:

    Sorry but we need to keep this agreement going a bit longer so that PLP can issue a completely false statement just before the election – saying that ground will definitely be broken in the coming months.

  9. Vote for Me says:

    US Hotelier raises a good point.

    What is the cause of the delay in moving the hotel foward and how can we assist? As an example, it would be interesting to know if the delay relates to the final funding that is required. From memory, the hotel will cost in the $200m range. Is Bermuda in a position to offer concessions to the value of $20 as assistance? Can teh union be flexible with wage reates?

    Some will say yes and some will say no. Others will undoubtedly tie the answer to the PLP but in the final analysis we need to make the decision to move forward. On that note I am not aware of anyone who denies that St. Georges and Bermuda needs a new hotel. Therefore the Government should take whatever steps are necessary to get the hotel going.

    My opinon – grant up to $20m in concessions, cause them to keep any profits from sales of the individual units in escrow (to ensure the hotel is built) and then BREAK GROUND.

    • navin johnson says:

      Vote for me we have already given Mr. Bazarian numerous concessions such as a 262 year lease….Ewart Brown announced in April of 2007 that the project was on….in December of 2007 shortly before the election he promised that construction would start by Jan 1, 2008 or shortly after the election….on December 17, 2008 the signing ceremony with Park Hyatt took place with much fanfare…on October 13,2010 Mr. Bazarian on one of his PR Fly ins announced that funding was fully in place….I can go on and on but you may get my drift by now….the Government has promised numberous concessions to no avail…This project will not happen….this year, before this election just like the election in December of 2007 we will hear all of the promises and see Mr. Bazarian fly in full of good cheer and then he will depart and return when the Government needs him to wave and make promises….sorry to be so sceptical but full me once shame on you fool me umpteen times shame on me…

    • say it like it is. says:

      Ofcourse it’s all about the almighty dollar. He cannot find any bank to finance him. Which bank would finance a hotel where tourism is practically dead? They would be risk a lot of money on that one. This guy has taken advantage of this country for far too long now, four years? Crazy. They should have expelled him from this equasion three years and 6 months ago.

  10. navin johnson says:

    US Hotelier what has Mr. Bazarian invested up to this point?

    • Family Man says:

      I’m sure there was a significant payment in order to get such a long lease on so many acres of prime Bermuda real estate. Only the ’21 years less a day’ leases are given out for free.

      The payment may not have been made to Bermuda though.

  11. US Hotelier says:

    No idea – I’ll ask him next time he is on island! But getting a project to the point that you are through Planning is far from cheap. Maybe millions for a project this size.

  12. Zombie Apocalypse says:

    The Hyatt will never be built, but the PLP can’t say that in the run-up to the election, because it will expose them as stupid liars.

    Similarly, they will keep up the pretense of the new hotel in Hamilton for years. Furbie has already been telling us work will be started ‘very very soon’. Complete shite of course.

  13. UncleSam says:

    In my humble opinion, this is excellent news. Terminating the contract will free the property up for more reasonable development. Getting that golf course open would be a big boost for the old towne. As for the hotel site… make it a park until the right offer comes around, anything is better than it sitting vacant waiting on Mr.Bazarian.

  14. Only problem says:

    Only problem is that Bazarian has never developed a hotel property in his life. Other than that, everything is hunky dory.

  15. Kim Smith says:

    Copy and paste this address into your browser to take a helicopter ride over Roko Ki.

    “Roko Ki is home to an elegant collection of luxury residences, condominiums, villa and penthouses situated on the eastern tip of the Dominican Republic …”

    Roko Ki is… or was one of Mr. Bazarian’s ‘beautiful’ projects… look closely at the buildings in this video of Mr. Bazarian’s elegant collection of luxury residence and you will see that they are still sitting incomplete! Ah, but this was done in 2007. OK… look at any of the other videos that come up in YouTube and you will see that those élegant collection of luxury residences, condos, villa and penthouses are still not done.

    Please do not let this happen in Bermuda. We have grounds to terminate the agreement and I think that should be done post-haste!

  16. Razors Edge says:

    Who are you building a hotel for? The palmetto bugs living in the walls? Can’t be for tourists cause they either cant afford it or have been driven away by a racist and xenophobic government.

  17. Keepin' it Real...4Real! says:

    and again lots of comments with no resolve involved…i can see why nothing is being done because you all sound like Corporate sheep….lot’s of confusion because there are too many of you still living your lives inside the box rather than stepping out of the box and looking at the whole picture…i feel like starting a group by the name W.A.B…(Wide Awake Bermudians)…if you do not attempt to take Possession of Your Island…it will diminish right before your Eyes…and when you finaly wake up it will be crying time again, only this time it will fall on deaf ears….When will you all realize that there is a group of people on this earth that is so far up the foodchain that they believe they OWN IT…their MONETARY worth is far beyond your imagination and is too complex for feeble little minds to comprehend fully….YOU work for them, YOU purchase from them, YOU are taxed by them, and im not just talking about Bermuda Govt. or our retailers, all of these Bermudians i just mentioned are lovely people BUT it goes further than that,they are working inside THE SYSTEM which was designed EXCLUSIVELY for PROFIT….these are the people that tell YOU how to LIVE your LIFE, and Discipline you when THEY feel its fit to, while they do as they PLEASE…now you can see why they think that they are GOD…they make the rules and YOU Must Follow. So do you still feel like your free….
    just for a moment step out of the box and look down at what you have helped to create.
    Oh by the way ,…the way we are living …is not the way God intended.
    so much to do in so little time …that is the struggle.

  18. Keepin' it Real...4Real! says:

    Bermuda needs to build this hotel…we have some Elites here, either born or bred…we dont need a $600,000,000 hotel for 6 people…start small in phases as the premise becomes profitable But the design of the Hotel MUST be an ISLAND themed establishment, not a VEGAS STYLE monstrosity…FACT tourist looking for NATIVITY…things they loved, things they miss, about THE GOOD OL’ DAYS…and for the young ones that dont even know what grass is coz they born in a concrete jungle.
    NOTHING but Bermudian Staff….time for you all to prove your self because the Standards required for Hospitality Just went UP! so get over it, and get on with it.
    that way everybody gets to eat…
    ahhh too much to keep going …i’m out