UBP: Government ‘Silence’ On Park Hyatt
[Update - Minister Furbert told ZBM the agreement is "terminated" which he later changed, saying he "misspoke"]
The “lack of transparency” being demonstrated by the PLP Government in the Park Hyatt matter is “totally unacceptable,” and people deserve to be updated on public lands, UBP MP Charlie Swan said.
The the former Club Med hotel closed in 1988, was imploded in 2008, and scheduled to become a Park Hyatt Hotel. At a Town Hall meeting in 2010, developer Carl Bazarian said that construction would begin in late 2011. This plan is the latest of several for the property which has not been used as a tourist resort for almost 25 years.
Mr Swan said: “Government’s silence on the Park Hyatt Act/Addax Holdings Lease Agreement is causing grave anxiety and undermining confidence in Bermuda, and internationally with potential developers, on its handling of the 80 acre property leased to Addax Holdings owned by Mr. Carl Bazarian for 132 years with an automatic renewal for a further 132 years.
“Ironically, the lease agreement is with Addax Holdings – which was only recently revealed as a result of our (UBP) parliamentary questions – but the act is the Park Hyatt (St. George’s) Act 2008.
“It is worth noting that The Park Hyatt (St. George’s) Act 2008 makes no reference to Addax Holdings that holds the leases for the property, which compounds the concern as this was not determined until February when we had the leases was brought to light.
“Noteworthy, is that to date the Master Development Agreement (MDA) has not been made public. Within the terms of the Ground Leases are numerous references to this MDA, some of which leave it unclear as to whom ultimately is the tenant, or who will be the operator of the hotel.
Mr Swan continued: “In fact, a close read of the Ground Leases leaves one with the impression that the development itself could ultimately be turned over – by Mr.Bazarian or Addax Holdings – to any body or group he/they decide on. All this without the scrutiny, and beyond the control, of our own government.
“The real concern throughout this disappointing non event in recent months has been the silence of the PLP Government whose Minister of Tourism and/or Minister of Works should have provided the country with an update on the non performance on the Club Med lease – particularly since the developer is clearly in breach of completion deadlines set out in each of the lease agreements.
“This lack of transparency being demonstrated by the PLP Government is totally unacceptable. The people of Bermuda deserve to be updated on public lands by the Government of Bermuda and not subjected to public relation exercises.
“This deafening silence on the part of the PLP government concerning a key pillar of our economy, is concerning also because for Bermuda to continue to support the vaunted social programs that this government prides itself on, Bermuda also needs to have a business ethic that benefits us as well. Income from the tourism pillar of our economy helps to sustain the programs we have spent millions implementing.
“It would appear that the PLP government finds it easier to spend money than to generate it. That is a deplorable state of affairs for this country, and our people,” concluded Mr Swan.
Update: Tourism Minister Wayne Furbert told ZBM this evening: “The agreement with the Club Med, or Park Haytt, has terminated. We all know that the termination took place. But the Government is looking at its options of what it should do.”
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Articles that link to this one:
- Park Hyatt Resort Agreement Terminated | Bernews.com | September 28, 2012
The Brownites have ruined our international reputation as an ethical jurisdiction. So no new hotel will be built in Bermuda while the PLP are in power. It’s that simple. …
Absolutely correct. The PLP/BIU have shown time and time again they are inept, and anti-business to boot. No offshore developer in their right mind is going to touch this country with a barge pole under their administration.
They are waiting for gaming to be passed…probably was already promised to them by EB hence him trying to push it through under the radar.
No one has pushed harder for gaming than Sir John Swan, not even EB!
Glad to hear from the UBP! This is a serious issue for St. Georgians and Bermuda as a whole.
Kim…what is there to update….it’s a non-starter now, was yesterday and will be tomorrow…
Over the many years we have seen press conferences on numerous new hotel developments all over the Island and to date, not a single one has been realized…
Park Hyatt…yeah right…
Change people…change is needed to get this Island back on its feet! I can’t wait to tick the box.
I am doing some research into Mr. Bazarian’s involvement as ‘developer’ with other named properties. Like someone else said in a post to another article, this is no easy feat. Talk about smoke and mirrors… but stay tuned for the results!
Bazarian has never been a developer – my previous post to that effect have been blocked but fact is that Bazarian is not a developer.
Why build new hotels when there are hotels on the island now that the banks can’t sell for pennies on the dollar?
Even Willowbank which was run as a not-for-profit enterprise couldn’t survive.
Yup, just ridiculous, and I am glad the Swan;s are asking questions that no one else seems to be asking of this Government. They have kept us out of the loop on this one and it’s really not right at all. Hope people remember this when they vote!
Charlie, you idiot, the only thing causing “grave anxiety and undermining confidence in Bermuda, and internationally with potential developers” is loud mouth, ill-informed politicians like you who scare investors off because the media entertain your every statement.Who would want to participate in Bermuda where under every bushel you all see corruption, a lack of transparency or the like? Can’t you call something a failure without insinuating that someone is corrupt?! Name one area in the western world where resort lodging is is being supported by investors…..besides BahaMar in Nassau….nothing is happening anywhere. The Four Seasons in Barbados is still not done in spite of bailouts and the like. In ST. Kitt’s they’re selling citizenship to finance projects…..times are tough everywhere.
Just because your plumbing firm gets a Government contract does not entitle the entire country to be privy to your books. Exercise a little restraint and some discretion and stop showing us to be the little morons the rest of the development world think we are.Its difficult to explain to investors that your exposure is not commensurate with either your power or influence. Only in Bermuda could this rant about nothing be news.Mind you, you’re the only UBP person without a seat at the tourism table so maybe that’s what this is about.
If you know where to find $300m then tell us all; if not stay silent leave this to people who understand the game.
@Hmmm… can you not show some respect? Your rant says more about your character. I would venture a guess that you can’t hold a candle to Mr. Charlie Swan in any way, shape or form.
I agree with you here. There has been no other real interest in developing this property for the past 30 years. Mr Swan is trying to get media exposure because the election is coming.
You called a sitting MP an idiot and a highly secretive $300 Million investment a game. HMMMM indeed.
Hmmm, what are we supposed to think then? You call Swan an idiot. What kind of idiot has given our land away for 132 years for nothing? What kind of idiot believes a hotel will be built there by Bazarian? What kind of an idiot are you?
@Hmmmmmm – wish you would of shut the hell up and only said Hmmmmmmmmmmmm.
Mr. Swan you have integrity which NON NON NON of the OBA members with the exception of Craig has shown in the political circle. Mr. Swan my family lives in Southampton and all on the hill will vote for you as long as you don’t join up with any of those jokers PLP or OBA!
The PLP gave a lease for 132 years plus an automatic extension of 132 years to construct and open a hotel within a specified time frame. This has not been accomplished. In normal circumstances this would result in the lease terms being breached and terminated, allowing the land to revert back to the original owners – the people of Bermuda. Why hasn’t this happened? To have prime Bermuda public land effectively given to a foreign person for 262 years, on terms that seem not worth the paper they’re written on, is naturally concerning.
The Premier keeps promising Good Governance and Transparency. This is not the only example of where her words mean nothing.
Jennifer? Wayne? E. Michael? If you love your country more than your personal ambition, please say something before the election. Even ‘he that spoke with forked tongue’ spoke volumes that gave us east enders some hope (albiet fale hope)
And my friend Kim talks out of both sides of his mouth.
Sad really when there are only two Swans in Coot Pond.
Irony.
From all accounts Mr. Bazarian has reneged on his side of the contract and therefore the development rights can and should be taken back… and now!
That the whole point Kim.
Ewart Brown has it all covered.
He blew it up.
Mark my words in 20 years the site will be known as Turdle Hill LLC.
You never know what EB did, and signed off on, knowing full well that project would never come to fruition. Two trying to get away with something.
Hmmm! 262 years for 80 acres how much did the brown get for that one.
If that is the case they can wait for years to develop the property
at their convience.
And remember the GOLDEN RULE.
HE WHO HAS THE GOLD RULES.
The Park Hyatt project has been terminated, Wayne Furbert made an announcement today.
Bazarian got kicked to the curb as well…. Must be an election coming.
Funny how Bernews hasn’t reported it yet!
@ Captain Longtail: Bernews did report it. It was posted on BERNEWS when I got up at 5 a.m. this morning, however it has since been removed.
@Bernews: What’s up with that? Why was it removed from your website?