Minister: Ottiwell Simmons Arbitration Centre

Speaking in the House of Assembly today [July 24], Minister of Public Works Lt/Col David Burch provided an update on the plans for the Ottiwell A. Simmons International Arbitration Center.

The Minister said, “As part of the MOU, the Ministry introduced Milhouse to the team at the BBDA who in turn shared their research on Arbitration Centres globally. A local architect was engaged and plans for the building were prepared based on the research of both parties.

“The result was a set of plans for a 5 story building that includes meeting rooms, office space, retail space on the first floor in accordance with the City Plan, a cafeteria, elevators, underground parking with private access for those wishing to remain discrete, to entertainment space on the balcony for casual negotiations or receptions.

“The details of the financing of this project is the final hurdle – the Term Sheet is still being reviewed by the Ministry of Finance and as soon as we get the green light – the financing specifics of the project will likewise be reported. We anticipate an early response that will lead to construction beginning in December 2020 and delivery of a complete building 15 months later in March 2022.”

The Minister’s full statement follows below:

Good Morning, Mr. Speaker, I am pleased to bring my 3rd report on the state of plans for the Ottiwell A. Simmons International Arbitration Center.

Mr. Speaker, to remind – in 2017 the Bermuda Business Development Corporation originally proposed that the vacant property be converted into an International Arbitration Centre. And in the 2018 Speech from the Throne it was announced that this would be the direction of the Government and that the Building would be re-named the Ottiwell A. Simmons International Arbitration Center in honour of this most distinguished Bermudian.

Mr. Speaker, although this facility is intended to serve as an international arbitration centre that brings with it the exposure and income for Bermuda on the macro level, the Government’s policy is that it must also serve as a mediation centre for residents who may have minor disputes, that if handled here could result in a reduction in the number of cases heard by the courts or submitted to the Office of the Ombudsman.

Upon investigation it was discovered by our Engineers that both the Allenhurst and the adjoining Valerie T Scott buildings needed to be demolished.

Mr. Speaker, in March this year demolition of the Valerie T. Scott building was completed with the demolition works of the Allenhurst Building getting underway shortly thereafter – only to be delayed several months as a result of the Covid-19 virus. Once the Shelter in Place was lifted the works recommenced and both sites are now cleared and ready for new construction.

In my February 14th report to the House I indicated that discussions were fairly well advanced towards developing a public private partnership to build the Centre and once there is an agreement – I would report further to this House.

Mr. Speaker, in September last year Bermudian attorney, Mr. Kevin Bean, introduced the Ministry to Milhouse Engineering & Construction, Inc., a professional, full-service engineering and architecture firm located in downtown Chicago, with several locations within the continental US and internationally. Mr. Bean, who now serves as General Counsel for Milhouse, spoke of their extensive experience in engineering, construction and developing water and sewage systems around the world – felt that Bermuda could benefit from their expertise.

Shortly thereafter the Chairman & CEO of Milhouse, Mr. Wilbur Milhouse, III along with Senior Vice President Mr. Frank Martin visited Bermuda for initial introductions and discussions. Several meetings were held with our engineers and the executive management of the 3 quangos that fall under the Ministry.

Mr. Speaker, in December 2019, I along with the Permanent Secretary, Randy Rochester and Principal Water and Sewage Engineer, Tarik Christopher paid a visit to the Milhouse Headquarters in Chicago to discuss the master water and sewage plan for the country, and during these talks, it became evident that Milhouse, with its extremely diverse team of international engineers, architects, designers, planners and project managers, could not only provide advice on the water and sewage plan, but other capital projects. One such project was the development of the Ottiwell A. Simmons Arbitration Centre which Milhouse proposed as a public private partnership at no cost to the government.

A Memorandum of Understanding [“MOU”] was entered into by Milhouse and the Ministry which delineated the responsibilities of each during this initiative to ensure its ultimate success.

Mr. Speaker, as part of the MOU, the Ministry introduced Milhouse to the team at the BBDA who in turn shared their research on Arbitration Centres globally. A local architect was engaged and plans for the building were prepared based on the research of both parties. The result was a set of plans for a 5 story building [conceptual drawings attached] that includes meeting rooms, office space, retail space on the first floor in accordance with the City Plan, a cafeteria, elevators, underground parking with private access for those wishing to remain discrete, to entertainment space on the balcony for casual negotiations or receptions.

The details of the financing of this project is the final hurdle – the Term Sheet is still being reviewed by the Ministry of Finance and as soon as we get the green light – the financing specifics of the project will likewise be reported. We anticipate an early response that will lead to construction beginning in December 2020 and delivery of a complete building 15 months later in March 2022.

Mr. Speaker, the Principals of Milhouse are expected on Island next week for an official ground breaking in the presence of Mr. Ottiwell Simmons and others involved in the project thus far.

Mr. Speaker, this will be a world class facility with the potential to put Bermuda on the map as well as to encourage local lawyers to go into the arbitration field.

And of course it cannot be lost on anyone that this too will also provide jobs and economic stimulus in the country when it is most needed.

Mr. Speaker, I am greatly excited by this project as it is what Public Works should be doing knocking down old buildings and building anew. I am convinced Milhouse are the perfect team to build a relationship with to our mutual benefit.

Thank you, Mr. Speaker.

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