Place office block deal on Front Street, Premier the Hon. Sir John Swan confirmed yesterday.

And Sir John did not deny lawyer Mr. Julian Hall's claim that he had to pay the Premier's company more than $2 million to do so.

At Tuesday night's Progressive Labour Party meeting on the Independence referendum, Mr. Hall told the crowd at the Leopards Club that the Premier "was paid over $2 million by Dr. Wolfgang Flottl, simply because Dr. Flottl wanted to get out of the Seon building deal''.

This happened at about the same time the Premier was saying in the House of Assembly that those who entered public life should do so "out of personal sacrifice'', Mr. Hall said.

In April of 1994, a group of developers headed by the Premier and Mr. Flottl were given the go-ahead to erect a huge eight-floor office and shopping complex on Front Street. Yesterday, Sir John said Mr. Flottl wanted out of the development after calling for plans for Seon Place to be revised four times.

The amount of money he paid did not cover the cost of the revisions, made by architects Barker & Linberg, he said.

It was a private business deal not connected to his position as Premier, he said. Sir John added that the business partners parted amicably and he was now looking for a new partner.

Mr. Flottl, who has a residence in Tucker's Town, was travelling yesterday and could not be reached for comment.

The development is to take up two lots of land next to Dismont Robinson's liquor store, totalling 28,880 square feet.

To make way for it, Seon Lane would be concreted in and moved to the west side of the complex. An underground parking lot and grand marble lobby with waterfalls were also planned.