Govt Tables Motion On Par-la-Ville Hotel Project
Government today tabled a motion in the House of Assembly to authorise the giving of a guarantee of up to a maximum of $18M by the Corporation of Hamilton, for the purpose of developing a hotel on the site of the Par-la-Ville car park.
The motion is in accordance with section 37(1) of the Municipalities Act 1923,
The current hotel project has been under consideration for many years, with the most recent development agreement being signed in April 2012.
Minister of Home Affairs Michael Fahy, who also has responsibility for Municipalities, said, “Not only is the addition of new hotel beds consistent with the Government’s tourism development strategy to revitalise our tourism product, but this project will add a boost to the economy by creating much needed jobs.
“Today’s motion demonstrates the Government’s support for the project in aiding the developer to raise the necessary financing to bring this project to fruition.”
Minister Fahy continued, “It is intended that the guarantee is subject to very specific criteria and the Corporation of Hamilton will be required to conduct thorough due diligence, to the satisfaction of the Bermuda Government, before execution of what is essentially a collateralized mortgage.”
The Minister said the obvious benefit of this project is the “enhancement of the Island’s tourism and business offerings through development of a new and modern luxury world-class hotel.”
Giving Bermuda away sheesh.
Bermuda needs hotels to compete, what would you prefer, not competing, lying that another hotel will break ground tomorrow or incentivizing developers? (which incidentally the entire world is doing).
I think this is a good idea in theory, however, entrusting the current COH group with 1 cent of the public purse makes me nervous.
The key words: “It is intended that the guarantee is subject to very specific criteria and the Corporation of Hamilton will be required to conduct thorough due diligence, to the satisfaction of the Bermuda Government, before execution of what is essentially a collateralized mortgage.”
Bull.
They just want to see who really holds the cards.
Another bluff by Fahy et al.
Terry, give him a shot, this isn’t the PLP and their hotel lies…unless of course it is.
But give him a shot, eh?
This will be interesting. But I hope the developer understands the imposed restrictions and conditions and that they are strictly enforced. Otherwise, it won’t end well. Let’s face it…$18 million will get you a hole in the ground. The hotel is going to be at least $50-100 million. Where’s the BEEF?
Unreal.
Why is the government getting in the business of backstopping a private business and putting the taxpayer at risk for a speculative project?
Either these projects are viable and will justify their cost of capital or they’re not and the government should not be in the business of financing development projects at taxpayer risk. Leave that to the professionals.
Because Bermuda has been in a Tourism hole for decades and we are not relevant. The govt is trying to jump start investment for u. If we get one hotel going, that could encourage other investors. The best solution for creating a winning streak is to start winning.
Do not use taxpayers money on this project!
Unfortunately international business confidence in Bermuda has fallen to the low, low, level now where this is the only way that new development will ever happen. The question we all have to ask ourselves as Bermudians is… Do we want foreign money (growth) or not? It’s actually still our choice. Simple (you would think).
Would you rather spend money on financial assistance? This is a make work project that will hopefully lead to further long term jobs as well for Bermudians. $18Million won’t last long at financial assistance, but can be a domino for long term paychecks for people who are currently without a job.
I like financing the Deputy Mayor.
If you pay COH anything, you already are.
Tread carefully Fahy…..very carefully
Like Charter says: “It is intended that the guarantee is subject to very specific criteria and the Corporation of Hamilton will be required to conduct thorough due diligence, to the satisfaction of the Bermuda Government, before execution of what is essentially a collateralized mortgage.”
So….if the criteria is not met…no deal?!? At least that is how I read it!
You keep going and soon the will not be one blade of grass left,
how ever can paint your concrete green.
Junk Yard Dog…please stop throwing your unhelpful “green party line” here mate…PAr-La-Ville Parking lot is covered in concrete…it’s a parking lot…now it will be a Hotel. There’s hardly a blade of grass on it now! Pick your fights brother! And apply your mind while you’re at it please.
Peace,
JC