The project to build nearly 200 homes at Ship?s Wharf in St. David?s has been fraught with problems throughout its short life.

Originally it seemed like the panacea to the Government?s pressing housing problems as Housing Minister Ashfield DeVent was finally able to say he had a plan.

The scheme, initiated by Sonesta hotel owner Clifford Schorer, was for 200 homes on a 15.6-acre waterside industrial park.

Half the homes would be sold at market price to subsidise the cost of building affordable homes, priced at $199,000, to be sold to the winners of a lottery.

Meanwhile Government agreed to waive duty on building materials to keep costs low.

It seemed perfect. The project would provide a substantial amount of units, avoid the pitfalls of ghetto housing and eventually pay for itself with money loaned from the international sector.

Furthermore Mr. Schorer had experience of similar projects having pioneered similar schemes in Massachusetts since 1994.

Bermuda Homes for People was set up in October to manage the project, later named Harbourside Village, but alarm bells had sounded in November when it emerged that Mr. Schorer owed a number of companies who had provided supplies or building work at the Wyndham Bermuda Resort and Spa.

It was claimed up to one dozen companies were complaining of late payments but Mr. Schorer said late payments were over squabbles over the standard of the work and said financing for Bermuda Homes for People would not be an issue.

Further problems emerged with landlord?s Bermuda Land Development Company reluctant to give up the land at Ship?s Wharf for free.

As compensation negotiations continued between Government and BLDC the deadline for starting work neared but around 30 businesses were still in place and threatening not to leave.

BLDC was faced with the problem of finding a new site for them which led to the project start date being pushed back from January 1, 2005 to February 28.

This too was then pushed back to the early summer as the logistics of relocating so many businesses became apparent.

Last night Bermuda Homes for People spokeswoman Aideen Ratteray-Pryse was upbeat.

She said Mr. Schorer was an angel investor who had helped start the project until it got other funding.

She said his expense claims were being reviewed and if credible would be paid when further funding arrived.

?He?s still available as a consultant.?