Minister Burch On Bermudiana Beach Resort
Minister of Public Works Lt/Col David Burch responded to Craig Cannonier’s comments on the Bermudiana Beach Resort, saying he notes the “amnesia displayed by the Shadow Minister in his comments as he would have had conduct of this matter when he served as the Minister of Public Works under the OBA administration.”
This follows after OBA MP Craig Cannonier said this “inexcusable waste of taxpayers dollars lies squarely with Premier Burt and his colleagues” and “the Government’s recent announcement for the plans for Bermudiana Beach Resort is a last ditch attempt to salvage a huge mess created by the Burt Administration.”
The property, originally called Grand Atlantic, was built over a decade ago as a housing development however only one unit sold, the plans were then adjusted to make it a hotel development, and the plans have now adjusted to make the property into residential rental units.
Minister Burch said, “The Bermudiana Beach Resort is certainly not a failed project the details of its history was laid out last Thursday, but I note the amnesia displayed by the Shadow Minister in his comments as he would have had conduct of this matter when he served as the Minister of Public Works under the OBA administration.
“Under the OBA administration one of their three Ministers of Public Works would have secured the agreement to convert the units to a hotel in 2016.
“We are faced with a situation that has not produced any revenue to the government yet and a comprehensive review was conducted to guide us to that end. Rental accommodation versus a hotel guarantees greater income and experiences less risk than a hotel.
“We have indicated that those on the Bermuda Housing Corporation list will be reviewed so that some of them may take advantage of this opportunity as well as some guest workers to ensure sufficient revenue is raised to service the outstanding debt.
“This government has done more to assist Bermudians in gaining affordable housing than the OBA ever did and continues to do so. It is unfortunate that the Opposition has chosen to politicise this issue given the challenges that both the PLP and OBA governments faced in trying to make a success of this project in any shape or form.
“We had a choice. We received expert advice which led to two recommendations. We believe that either one of those recommendations would work – the hotel route or turning the site into residential rental units.
“As I stated previously, we have decided to go with the rental accommodation option as it will result in more revenue in return over the long term and it poses less of a financial risk than the hotel option.
“As to the claims that turning the property into a residential rental complex ignores Bermudians and is biased against guest workers, I say, nothing can be further from the truth.
“As I said last week, we had to look at the requirement to generate enough revenue to cover the project’s debt, so that no more public funds would be spent on the project and that we would go through the BHC waiting list and determine those families that would qualify for this type of accommodation including the normal support we give to families [rent geared-to-income, etc].
“While Bermudians and Bermudian families will be eligible to rent these units, I do not see it as a negative either that guest workers will also be eligible.
“Everyone agrees, that part of the challenge that we are facing is that we need more people in the island. And you cannot have more people here if they do not have anywhere to live.
“Elsewhere, I have been asked to reveal the exact cost of to break our development agreement with Hilton Hotels. While I do know the exact amount, I do not wish to put it into the public domain at this time.
“Last week I said it was under half a million dollars. It is significantly below that price, however I don’t want to publicise it without some collaboration with Hilton.”
Why does the public have to wait until the next election before this guy Burch is removed.
“Minister Burch said, “The Bermudiana Beach Resort is certainly not a failed project”.
Yes it is. It is the epitome of failure. Over $200m of taxpayer dollars wasted. And borrowed money is still being poured into it.
It is a monument to PLP incompetence.
It was a failure once the cost per room exceeded what a similar condo in the local market costs to build. That point would have been around $60 million, being generous, whether for sale, rental, or hotel. Common sense made that clear, and paying for expert reports show how incompetent they are.
Several months ago, Burch was saying taxpayers would be refunded by the sale of the units. No chance then and worse now.
Hence my point that government should not be in the property development business.
“Minister Burch said, “The Bermudiana Beach Resort is certainly not a failed project”.
Well, I would not call it a successful project, not as Grand Atlantic housing, and not as a hotel (which never happened).
We do need to get SOME value for our investment. According to former PLP Senator and MP Vance Campbell, we were paying in excess of $150,000 per year to maintain the empty White Elephant/Grand Atlantic/Bermudian Beach development in 2018.
See https://bernews.com/2018/11/senator-answers-questions-on-grand-atlantic/
We’re going to listen to Vance this guy is another opportunist. The oba needs to stop aligning with these types of dishonest individuals. We keep recruiting plp trash to boost the ranks.
This article was in 2018, so not recent. Why is Vance dishonest? Please share.
Dishonest on why he joined the OBA! Hey the OBA likes recruiting trash.
So what was he dishonest about. You haven’t said?
It is a epic failure.
Original cost of build $40M
Spend to convert to Hotel $100M
Addition cost to convert back to apartments $9M
Exit fee to Hilton $0.5M
$149.5 million dollars vs $40M of original build. It cost 374% more than originally planned. Oh, and that money has all been borrowed, so please factoring the cost at 5% every year. This is and was another one of the PLP’s EPIC FAILURES (except for the friends and family who benefited of course, to them it was an excellent feed at the trough at Mr and Mrs Bermuda’s expense)
Do make you mind up a Resort or Rent units . BHC does rental units.
I am going to ask you as nicely as i know how for you to stop throwing the tax payer money away .
Are you having a crew painting the place pink now ? it is going to take more tha pink.
You are not going to get people to pay the rents as they just do not have the money to even to cover 50 % the annual norm.
Normal net return is usually half of gross annual that is if you are lucky .
The 20 % inflation killed the goose that layed the golden egg .
To be fair Bermuda needs to realize some sort of revenue from this project and if converting into rental units if the best path forward at this time than so be it.
The sooner Burch heads to Jamaica the better
The PLP have had around 22 years, the OBA around 4 years. there was no money to make the government payroll as the PLP had spent all the money when they came into office. To say the PLP has done more affordable housing than the OBA is a desperate lash out by Burch. there was no money in the 4 years, the OBA managed to get Bermuda back on its feet, after the PLP had bankrupt Bermuda.
The PLP build affordable housing in areas strategically to increase their voter base in marginal seat areas , so they could get the seat at the following elections in order to gain and retain power. it had nothing to do with helping Bermudians, but instead helping themselves retain power, just like everything the PLP does, its about power and party , not Bermuda and Bermudians.
“like everything the PLP does, its about power and party , not Bermuda and Bermudians”
Vance Campbell said something similar when he crossed the floor. He said the PLP were very good at politics but not at governing.
If you have a car that will not start because of a seized engine, then you have a faied car.
Where has the opposition disapeared too on all of this?
The beach looks like Normandy on steroids .
Why have they let it this go on for so long to scramble up some tennants.
Why do you think that potential tennants who are hourly workers went to the BHC in the first place . AFFORDABILITY !
That will keep Governments in Realestate business pulling at straws on te public purse.
MR . QUESTION .
They are not going admit that the costs and the project got out of hand as when watched the costs go through the roof.
Who did the feasibility study on that project ?
“Affordable Housing” could be an election promise or ploy .
Where and why did Sonesta Beach and the implosion above st Catherine’s Fort go ?
Why are there so many un told stories and secrets ?
Nothing in Bermuda is afordable as we are living a two tier economy riddled with inflation. .
Some of the claims made by the minister for W & E are not exactly accurate as he does battle in order to save face with the opposition .
B. H.C. A quango ,with out doubt can claim that their team of dedicated employees performed devoid of polatical persuasion a monumental achievement by building “hundreds of standard Bermuda homes with rental units included ” for the people of Bermuda.
The Board of Directors of the Bermuda Housing Corporation is made up of up to fourteen members; up to eleven members are appointed by the Minister responsible for housing and the remaining three are ex officio members from the civil service.
With 11 of 14 members appointed by the Minister, it is hardly independent.
PAC MAN says
Joe Bloggs.
Please read my above post again for clarification on. BHC policy requirements.
I said “dedicated employees ” and will also include the past General Managers. Mr. L.C. Mr. J.G & Mr E.C.
There were no attempts to favour or dissuade or require any Bermudian applicant preconseived or other wise or any thoughs of racial or political affiliation during the OBA’s tenure of the B.H.C.
Other policy requirements, the applicants should own a mortgageable residential domestic building lot free and clear of mortgages and other debts .
The principal property owner must be in posession of a term life insurance policy for the reducing amount of and duration of the mortgage loan .
Builder construction insurance was required for the account building contractor prior to the start of construction to completion and through hurricane season .
Owner were required to hold a home owner policy for the duration of the mortgage .
I say nothing against the dedicated employees of the BHC. Only that the Board of Directors is politically appointed and consist largely of PLP supporters.
As for what you say about mortgage requirements, I have never had a mortgage from BHC so I do not know. But if what you say is correct, the BHC has more stringent mortgage requirements than Bank of Bermuda used to have.
Joe Bloogs .
What I say on tese pages is always correct !
Do not question my integrity, tell me do you always hit others below the belt as you leave me with no alternative to complement you .
You want to do battle with me , do not waste your time , there are biger things the the tax payers need to concern them selves with .
We have a country in dire crisis .
Of the 26 years of employment with the Bank of Bermuda Ltd I worked 10 of those years with Mortgage department of the bank.
The Bank did require Comprehensive Home Insurance to cover the full value of the house with exception of tank foundation and cess pit which were considered not to burn .
The bank required the policy to be endorsed in favour of the Bank as Mortgagee as their interest may appear .
However Bank’s policy did not insist on Term life insurance tied to the remaining balance owed by insuring the principal owner they could only presume smart people purchase personal life insurance .
Other lender most likely went with their own alternate policy matters .
Simple message here, stop voting in people who are plainly not up to the job
The saddest thing about this whole situation is that an engineer warned them before they started the project that the cliff face these units are built on won’t last. They even had a news report about it. The gist of what was said is that in the next 100 years the cliff face will collapse rendering the units unfit for occupancy. They said that this key point would make these units a poor investment for anyone. However our brilliant governments have bulldozed ahead with a project that was doomed for the beginning. Now we are $100 million invested in a project that has little promise of a return. Just think of how many other projects are lacking funding and what we could have achieved if the funds were used wisely. Just another example of how Bermuda is a far cry away from financial independence and financial comprehension. Just wait it’s only a matter of time before they consider selling the property to a private foreign entity!!!
LET ME BE VERY BLUNT.
We the Bermudian Tax payers of Bermuda as our interests may appear .
Bermuda and Bermudians are not prepared to wait 30 years as the value of the currency only depreciates further.
We want all of our tax money back including all insured costs expenses incured debts , fee and charges including the value of the land all building construction and equipment.
No less than 100 % of all .
Our tax money is paid by us in good faith collected to be held in trust by the Government on behalf of the Bermudian people not squandered on failed speculative projects.
More Mps will abandon ship. Oh no answer to where they will park.The Govt continues to act like amateurs. One mistake after the other.
They can always join the OBA since they like to recruit garbage.
Are you saying all the PLP are garbage, thanks for waking up to reality.
Is “garbage” your term for honest people like Vance Campbell?
What trust government has almost none left.
I agree. Failed is when you give away money – like Sandys360 or Savvy.
With this project, we have something to show for it….until it falls into the ocean long before we recoup anywhere near the cost to build.
It’s not failed, we just spent multiples of what it would cost if it was someone who actually cared about the budget and not helping the F&F…..
May i offer 66 option plan and more
we have got to make thi project worl we h
do not have any other workable choice .
The word BEACH has to go that is no a real beac
So we have no choice but to make as they say lemon aid from lemons .
The people here just need to embrace the situation with some enthusiasm
Who says we cant rent to visitors well as live in staff.
We can alway sell as a going concern when the market is ripe for it .
We will giving jobs the bermudians at Bermuiana .
Bermudians can manage the business .
hey ! We are not stupid . just need a good GM
Firstly we all need to stop fighting wth one another over ” Bermudiana Beach “.
Time have come to do something about it an that is NOW .
There is nothing to stop government usin BHC continue with their program an stop competing with them .
Let me say the is no such thing as a perfect building, let me put it this way a bedroom is not a bedroom untill you put a bed in it.
I can at this point see what we have it is a a group of buildings on the south shore presently set up as hotel ready to go.
We can not afford any further money swapping back wards a everywhich way we deciding it uses should or could be for .
it is a fact that the property is present is not suatsable for local rental the rents would be out of this world .
We need to stay with what we have just now for our family visitors as a long term ” bus mans holiday” simply because the units there are similar units in the USA as i have stayed in one in Florida.
This is where families could bring their children, long term and get the a better rate.
Good for the kids are our of school for summer holidays.
Planning open the FOOD MART down the road next door break some rules
The one bedroom units will work for the day trippers
You found spelling errors bully for you, not me its Apple.
i have an excuse for every thing …….. almost !
Thank for readind this is all food for thought ,
BERMUDIANA STAFF. +++
” Bermudiana ”
with out doubt is the perfect way to make a
“home away from home”
make ithappen.
BOOKINGS
get unit deposit cancelations key that next time .
Do not compete with other tourist properties embrace them.
Promote winter vacations.
Establish a central busking office.
Do pre paid vacation plan only with a one day deposit up front
In house by direct bookings by phone with reverse charges by credit to room rate .
Get losts overseas agents.
Use our very own tourist dept for bookings. ” BOOK BERMUDA ”
Take bookings from down at the airport.
Commision to taxi drivers
Tag on to our local conputer e mails.
Link up your computers .
TRUST
The greatest bond, that any relationship includding family that should prevail also beween business and its cuntomers ,
one person and another with out question , including the Government , regardless of party politics and the people is TRUST !
Failing that, reliance on better judgement comes into question !
Have we all with out question been let down, ignored and discounted ?
Hardship becomes a sad state of affairs, to say the least !
When the people loose that TRUST bound in credability due to Bermuda and its people, consequently and unfortunately the future does not leave this country and the rest of of us , not much HOPE.
This present situation is where, at this critical time in our history the loss of HOPE for a better life for me my family my friends and the people of Bermuda leaving us very little of all , but to shed a tear !