After nearly three decades of lying fallow, the East End’s vacant hotel property will get “site work” before the year’s end, with groundbreaking for a new resort to commence in the first quarter of 2016.

Plans include 122 hotel rooms, six estate residences and a possible 90 condos, renovations for the St George’s Golf Course, and — subject to Gaming Commission approval — a casino.

Concessions for the development, which the One Bermuda Alliance has called the most important hotel development in 40 years, are expected to add up to $30 million over the course of ten years.

Shawn Crockwell, the Minister of Tourism Development and Transport, told the House of Assembly that once an agreement was completed in the next few weeks, town hall meetings would follow at the East End to inform residents.

An epic debate on the long-anticipated development took up the bulk of a special sitting of Parliament on Monday, with Mr Crockwell questioned at length by Opposition Members of Parliament.

Meetings with the people of St George’s are to be held once the developers, Desarrollos Hotelco Group, come to the Island after settling their agreement.

The developers will answer concerns of area residents, as well as negotiating with the Corporation of St George over shared sewerage facilities.

Responding to parliamentary questions from shadow minister Zane DeSilva, Mr Crockwell told the House that the lead principals for the company are Walter Stipida Sprecase and his son Roberto Stipa Tenreiro.

The firm is Venezuelan, and Mr Crockwell said the family travel with interpreters: Mr Stipida Sprecase does not speak English, while his son does.

A local company, Hotelco Bermuda Holding Limited, was incorporated on July 17, and ownership figures are not yet available.

While the deal comes with substantial concessions for the developers, Economic Development Minister Grant Gibbons stressed that the Island’s existing concession laws, dating back to 2000, were out of date.

A financial memorandum given to legislators said that the developer intended to invest “upwards of $120 million in the construction and development of the St George’s resort”.

An estimated break on the importation of building materials and supplies over a ten-year period is expected to be between $8 and $10 million, including materials for renovations in year seven of the resort’s opening date.

Supplies that qualify for a full relief from customs import duty range from air freshener and toiletries to stationery, cups and other standard items stocked in hotel rooms.

From its opening until its tenth anniversary, the resort is estimated to receive at least $15 million relief on the hotel occupancy tax, which is a fee paid by guests, at 7.25 per cent of the room rate, upon checking out.

Similarly, over ten years, the resort will reap an estimated $5 million on concessions for the employer’s share of payroll tax — although numbers will vary according to the staff.

Land tax concessions have not yet been determined, and the property is to be valued upon completion of the development.

That figure is not included in the overall $30 million concession estimate.

Many details have yet to be settled on the development, which will cover the old Club Med site on land to the south of St Catherine’s Point.

A ground lease and master development agreement will be tabled before legislators when the House of Assembly resumes in November.

Questioned throughout Monday night’s debate, Mr Crockwell told the House that the residential component of the development may include fractional units.

No firm decision has been made but the developers wish to retain the option, and Mr Crockwell said that residences alongside the St George’s Golf Course would not have an impact on the course itself.

The developer and operator are keen for “as much volume as possible” on the course, he said, and are “hopeful that a lot of people in the public are going to come and use the golf course”.

Meanwhile, there will be no restrictions placed on access to the public beach, the minister added.

• Directors and shareholders for Desarrollos Hotelco Group have been listed as: Maria de Stipa, Isabel Stipa Tenreiro, Elisa Stipa Tenreiro, Miguel Purroy Unanua, Pedro Vera Puente, Roberta Scivani, Maurizio Scrivani, Ms Zanoletti [sic], Mauricio Zanoletti, Giancarla Stipa, Diegio Freyre, Mauricio Zanoletti and Jose Guerrero Gil.

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