from planning officials.

Bermuda Properties Limited general manager Peter Parker told The Royal Gazette : "We are very happy about this. It really is a positive step for us. We are real glad about it.'' BPL applied last August for final planning approval to build 13 houses with swimming pools, 13 two-storey town houses, a communal pool, four tennis courts and a water tank on Ship's Hill which is adjacent to the Marriott Castle Harbour Resort.

And the Development Applications Board granted approval following a hearing on December 3 and a site visit on January 24.

Mr. Parker said: "Today we got the news that they approved it. I understand that quite a few conditions have been imposed on us but I am sure it is nothing that will bother us.'' The company has been attempting to fulfil its objectives -- including the development of Ship's Hill -- since 1984. The plan was originally to build 37 houses on the location but this was later scaled down.

The firm also wishes to revamp the Castle Harbour golf course, develop a second residential community at Tucker's Point and redevelop the resort -- parts of which were built over 60 years ago -- and bring it up to an up market level.

BPL has final approval for its plans for Ship's Hill and the golf course but has yet to apply for developing the hotel. These details have yet to be finalised.

"This is positive news for this hotel. We are not there yet,'' stressed Mr.

Parker. "With the granting of final approval, we now have to gel our final plans for the hotel.'' And BPL has to ensure it has an investment partner before it can go forward with its plans for the hotel.

It has a letter of intent it signed with merchant bank Donaldson Lufkin Jenrette (DLJ) at the end of last year.

Talks are presently in a due diligence phase and DLJ representatives have spoken to Government, the Opposition, the Bermuda Industrial Union, the National Trust and the Mid Ocean Club.

"DLJ want to discuss the development with all the people in Bermuda who have a stake or interest in the property,'' said Mr. Parker.

The potential investors are understood to be "quite concerned'' about the apparent opposition to the plan.

"They want to know that their potential investment in Bermuda is going to be welcomed by the community at large.'' The development has provoked the ire of environmentalists concerned about the destruction of a cave system under the site.

The caves are the home of 11 endangered species of microscopic shrimp-like creatures.

More than 400 applications were sent to the Planning Department calling for the development application to be refused.

But a report on the environmental impact the development would have received an A grade from overseas assessors.

The $300,000 report revealed that no harm would come to the caves. BPL had in principle planning approval subject to a satisfactory environmental statement.

It was the second report submitted by the company. The first one received a D grade as it was felt to be incomplete.

And it showed there would be no structural damage to the caves and that all sewage would be taken away to a state-of-the-art sewage plant. Even the chlorine from swimming pools will go to this plant.

"We are certainly moving up the ladder of success, but when we sign a final agreement with DLJ, there will be a real big announcement,'' said Mr. Parker.