The concession building at Shelly Bay looks set to be demolished this week after the structure was deemed unsafe.

Yesterday, the Ministry of Public Works stated that the developer of the Shelly Bay Beach House had been “unable to complete the redevelopment of the property”.

Tom Steinhoff, of Shelly Bay Beach House Ltd, had hoped to have the facility up and running in time for the summer despite complicated structural challenges with the building.

Under the plans, the property would have undergone a major renovation and been transformed into a fully licensed restaurant and bar with water sports and beach facilities. Last night, Mr Steinhoff said he was upset with the direction the project had taken.

“We are still interested and able to pursue the project and have been trying to find a way to make it work with Government where there is no cost to the tax payer,” he said.

“Unfortunately, no agreement was found. Ultimately, the building is structurally worse than anticipated by both parties and while we are willing to invest the extra funds, the terms of the lease need to reflect the additional investment.”

A Bermuda Government statement released yesterday afternoon said that the remaining structure was expected to be

demolished this week in the interests of public safety.

The statement added: “Area residents, Shelly Bay Beach patrons and the motoring public are being advised that in preparation for the demolition there will be increased construction activity near the Beach House.

“There will also be the likelihood of traffic delays to accommodate the demolition works.

“As a public safety note, motorists and pedestrians are encouraged to use care and caution when travelling through the Shelly Bay area.”

A Government spokeswoman added: “Conceptual plans for a replacement facility are being designed for presentation and consultation with area parliamentary representatives and members of the public.”