A plan to redevelop the Pink Beach Club property in Smith’s has been granted in-principle approval by the Planning Department.

The application proposes razing almost all of the existing buildings on the site in favour of a new boutique hotel, along with a beach club, two swimming pools, tennis courts, two restaurants and a host of amenities.

The $51.5 million project also includes a residential component, with several condominium units and a large home with a groundskeeper’s cottage on the eastern side of the property.

According to an environmental-impact statement included with the application, the project will create between 80 and 100 jobs during the construction phase, while around 56 people will be employed at the resort once the hotel opens its doors.

The application was welcomed by Tourism Minister Shawn Crockwell for bringing foreign investment to the Island and creating new jobs for Bermudians, but the neighbouring Hidden Cove expressed concerns about the project overdeveloping the western side of the site while making the largest beach on the property accessible only by those who occupy a private residence on the eastern side of the property.

During a meeting of the Development Applications Board on Friday, board members questioned the technical officer about several elements of the project, including the size of the 5.5 acre eastern residential lot.

A section of the minutes read: “The technical officer confirmed that the economics of the development were driving the proposed lot sizes and that without such the development would not be economically viable for the applicant.”

The Board also asked about the relatively small size of the proposed hotel, which would feature only 34 rooms.

“The technical officer confirmed that the development was designed as a five star, luxury ‘boutique hotel’ product geared towards the high class tourist market that wants an exclusive and intimate experience,” the minutes stated.

“In response, the Board then queried whether there was a market for such considering current issues with the Tucker’s Point Club (TPC). The technical officer confirmed that TPC is not classed as a ‘boutique hotel’ given its size and that it has not been designed to attract its specific target market.”

The technical officer also confirmed for the board that a planning condition will be included on every phased final planning application to ensure that the hotel is built and opened before the private residences receive their Certificate of Completion and Occupancy.

“The condition will state that neither a partial nor final certificate shall be issued for phase four (private residence) until partial certificates are issued for phases two and three with all conditions discharged and the hotel and associated amenities being in operation,” the minutes stated.

“The Department confirmed they would also communicate with Belco to ensure meters are not switched on for the private residence before such is completed.”

The Board also granted final approval two related planning applications — one to subdivide the property into two separate lots and a second regarding civil works on the site including roads, rock cuts, retaining walls, a reverse osmosis plant and sewage treatment plant.