Lawmakers on Wednesday approved a bill granting what could be up to $6 million in tax concessions for developments at the Lantana hotel property in Sandys.

Developer Don Burkett is looking to take over the resort and build 40 spa suites, four corporate wellness units, a spa, salon and staff quarters; a restaurant, clubhouse and swimming pool; seven yacht club marinas and 17 beachfront condominiums with a pool.

Mr. Burkett applied for the tax breaks under the Hotel Concessions Act which gives a range of tax incentives for hotel renovations and development, but is decided on case by case basis.

Opposition MPs questioned who really benefited from the Hotel Concessions Act, but did not object to the passage of the bill.

Tourism Minister acknowledged that there were kinks in the implementation of the legislation which was passed in 2000 to help boost the economy, and promised amendments in the near future.

She agreed with Opposition concerns that developers could have already taken advantage of the tax relief and profited from condominium developments but had not yet built the hotels.

?Everyone wants to get into condos and no one wants to get into hotels. We need to tell the people we want the hotel up first,? said Opposition MP .

But Ms Webb said that the problem had been noted and that the Lantana project would be done in phases with the resort section coming first.

She said she was not happy that neither the Palmetto Bay nor the Tucker?s Point developments had completed the hotel part of their plans.

?We cannot have condo developers cavorting as hotel developers,? she said. ?In no way will we allow you to develop condos on the pretext that you are building a hotel.?

And she denied Opposition suggestions that Government was in fact stimulating development of condos for non-Bermudians to live in.

Ms Webb said in general tax relief on condos will not be given unless the condos form part of a leaseback deal with the hotel.

And she pointed out that with a number of similar developments in the past, Bermudians had invested in the condos.

Despite the kinks in the system the Hotel Concessions Act was successful, she said.

?Bermuda is finally looking like a destination that people want to come to,? the Minister said.

?It?s the improvements that have taken place that has helped to enhance the Bermuda product... What we are trying to do us improve on the product.?

She added that there had been seven concession orders passed so far.

?It has been a success. Every single hotel in this country is under some form of development.?

Some $26 million will be spent on the Lantana project.

The developer wants relief on Customs duty for building materials; land tax relief up to $50,000 each year for five years; hotel occupancy tax exemption up to $300,000 a year for two years; payroll tax exemption of up to $97,500 a year for five years; and relief on import duties for alcohol of up to $72,500.