$4.8M Lease Agreement For Seagrass/Google

An agreement in principle has been made for Seagrass Services Limited – a local subsidiary of Google — to lease a site at Burrows Hill as part of their plans for the Nuvem transatlantic subsea cable system to connect Portugal, Bermuda, and the USA, Minister of Public Works Lt/Col David Burch said.

Speaking in the House of Assembly today [Sept 20] the Minister said, “Later today, I will be tabling a motion for this Honourable House to approve the lease agreement between the Bermuda Land Management Corporation and Seagrass Services Limited – a local subsidiary of the multinational corporation Google LLC.

“In September 2023, Google announced a commitment to invest in Bermuda by installing the “Nuvem” – a new transatlantic subsea cable system to connect Portugal, Bermuda, and the United States.

“Google indicated its desire to acquire property measuring a total area of 5.9 acres originally owned by the Government of Bermuda and leased to the former Bermuda Land Development Company Ltd. [BLDC], located at Burrows Hill [between Stock’s Road and Hall Street], Southside, St. George’s Parish. For clarity, this area is currently the Remote Control Car Track in St. David’s.

“A valuation of the property was conducted by the Bermuda Realty Company Limited, which indicated that the likely market value of the freehold interest in the property was Four Million Six Hundred and Fifty Thousand Dollars [BMD $4,650,000.00] or $825,000.00 per acre.

“An agreement in principle has been made for the site at Burrows Hill.

“It has been agreed in principle that a lease of Two Hundred and Sixty-Two [262] years will be held between Sea Grass Services Limited [a Google local subsidiary] and the newly established Bermuda Land Management Corporation [BLMC] for the sum of Four Million, Eight Hundred and Sixty-Seven Thousand, Five Hundred Dollars [USD $4,867,500.00].

“After further negotiations with Google, BLMC Management, and the tenants of the RC Car Track, the current track location will be moved to another site. A planning application will soon be submitted for a new RC Car track, and all works will be funded entirely by Google.”

The Minister’s full statement follows below:

Mr. Speaker, I rise to proudly demonstrate to the listening public this Government’s pledge to foster economic development and diversification in Bermuda. Later today, I will be tabling a motion for this Honourable House to approve the lease agreement between the Bermuda Land Management Corporation and Seagrass Services Limited – a local subsidiary of the multinational corporation Google LLC.

Mr. Speaker, Honourable members may recall that in September 2023, Google announced a commitment to invest in Bermuda by installing the “Nuvem” – a new transatlantic subsea cable system to connect Portugal, Bermuda, and the United States. It is intended that the Nuvem will improve network resiliency across the Atlantic, help meet the growing demand for digital services, and add international route diversity to support the development of information and communications technology [ICT] infrastructure for the continents and countries involved.

Mr. Speaker, I am proud to say that Bermuda will play an integral role by hosting a significant cable station to enable multiple cable landings. However, it is more than a cable landing just passing through the Island; it will provide a backbone for a wider strategy of a digital port with all the requirements for supporting data and digital infrastructure.

Mr. Speaker, in November 2023, by way of a Letter of Interest, Google indicated its desire to acquire property measuring a total area of 5.9 acres originally owned by the Government of Bermuda and leased to the former Bermuda Land Development Company Ltd. [BLDC], located at Burrows Hill [between Stock’s Road and Hall Street], Southside, St. George’s Parish. For clarity, this area is currently the Remote Control Car Track in St. David’s.

In November 2023, the then BLDC, the Government, and Google began negotiations. A valuation of the property was conducted by the Bermuda Realty Company Limited, which indicated that the likely market value of the freehold interest in the property was Four Million Six Hundred and Fifty Thousand Dollars [BMD $4,650,000.00] or $825,000.00 per acre.

After considerable due diligence, Mr. Speaker, and as a demonstration of good faith by all parties involved, an agreement in principle has been made for the site at Burrows Hill.

Mr. Speaker, it has been agreed in principle that a lease of Two Hundred and Sixty-Two [262] years will be held between Sea Grass Services Limited [a Google local subsidiary] and the newly established Bermuda Land Management Corporation [BLMC] for the sum of Four Million, Eight Hundred and Sixty-Seven Thousand, Five Hundred Dollars [USD $4,867,500.00].

Honourable Members are reminded that BLMC is a singular entity established as a result of the merging of the BLDC and the West End Development Corporation [WEDCO].

Additionally, Mr. Speaker, after further negotiations with Google, BLMC Management, and the tenants of the RC Car Track, the current track location will be moved to another site. A planning application will soon be submitted for a new RC Car track, and all works will be funded entirely by Google.

Mr. Speaker, it is intended for this agreement to act as a “magnet,” drawing other players in the communication industry, whether for laying their own cables or leasing from Google. There have already been inquiries from other major companies into building data centres in Bermuda. The successful agreement for this lease will deliver on the Government’s economic development commitments outlined in its 2020 Election Manifesto [FinTech and the National Space Strategy] by creating the infrastructure to support a technology hub.

Mr. Speaker, in addition to the land leasing and physical development of a large cable landing station, there are a number of other expected benefits to Bermuda with the landing of the Nuvem cable, including:

• Employment for positions needed on an ongoing basis for the cable landing station.
• Creating the infrastructure to support [1] a technology hub for FinTech and [2] increased satellite earth stations. Communication satellite earth stations are already either set up in Bermuda or showing increased interest in placing additional earth stations here.
• Increasing investment in renewable energy. The cable landing station will need between 600 kilowatts and 3 megawatts per annum of electricity over time as the cables ramp up.
• Providing access to Google’s significant resources and support, including:

1. Training opportunities for Bermudians by giving them access to Google’s training platform.
2. Support and advice for other sustainability projects and marine-related initiatives, including providing technology for monitoring and enforcement.
3. Supporting Bermuda’s education initiatives and community development opportunities.

I would like to take the time to thank all parties involved for making this happen. In particular:

• The Hon. Walter H. Roban, Minister of Home Affairs.
• Ms. Rozy Azhar, the former Permanent Secretary for the Ministry of Home Affairs.
• Solicitor General Mrs. Shakira Dill-Francois and Senior Crown Counsel Specialist Ms. Shantal Bailey of the Attorney General’s Chambers.
• Mr. Andrew Dias, the CEO of the Bermuda Land Management Corporation.
• The board of the Bermuda Land Management Corporation.
• The board of the former Bermuda Land Development Company.
• Mr. Jerome Wilson, Partner and Head of Technology & Innovation, and Mr. Neil Molyneux, Senior Associate, Property Team of Appleby Global Services.
• Ms. Fiona Beck, formerly of the Bermuda Business Development Agency and now a consultant with Google.

All of whom were instrumental in bringing this matter to its conclusion. We are most appreciative of their efforts.

Mr. Speaker, this agreement demonstrates Bermuda’s vitality for innovation and importance on a global scale. As I have stated before, it is intended for this agreement to act as a “magnet,” drawing other players in the communication industry to Bermuda.

I am pleased to say that this is precisely the scenario envisioned when the Submarine Communication Cables Act 2020 was developed under the Ministry of Home Affairs. Bermuda has a well-established reputation for creating sound regulatory policy, and this serves as yet another example of our forward-thinking approach.

Mr. Speaker, we hope that this agreement sets the foundation for even bigger and better things to come. We welcome Google’s proposed investment in Bermuda and look forward to a long and productive relationship with them.

Thank you, Mr. Speaker!

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