A pending hotel project in Warwick might be on shaky ground, Bermuda Environment and Sustainability Taskforce (BEST) chairman Stuart Hayward has warned.

He claims the planned location of Grand Atlantic Resort, a hotel and affordable housing development to be built on the South Shore, is dangerously close to a cliff.

According to Mr. Hayward, the property could be threatened over time by erosion.

However Gilbert Lopes, whose company GL Construction is involved in the project, insisted there was nothing to worry about.

Mr. Hayward voiced concerns that erosion could put the development, which is near the site of the former Golden Hind resort, at risk.

"As Premier Ewart Brown highlighted in a recent TV interview, erosion along Bermuda's coastline is a real concern," he said.

"This segment of South Shore has visibly eroded since Fabian. A softer vein of limestone near the base of the cliff has hollowed out the cliff in many places, and sections of earlier development, like staircases, have already fallen victim to this."

Mr. Hayward said he was also concerned the potential impact the site might have on traffic and the environment.

Mr. Lopes said the area had been inspected by experts and given the all-clear.

"We have had a visual report and a geological report on the site," he said. "We had geo-technicians come down from Toronto to take a look at it.

"They dug 11 holes, each one 100 feet down. They came back with a report and we're following what they say.

"These are the same people we use to check all of our building sites."

Mr. Lopes said the residential area could be built without any changes to the cliff face but reinforcements may be required for the hotel area.

Work on the affordable housing is expected to begin in three weeks, with construction on the hotel starting up in six months.

The $150 million development will include 125 affordable homes including 30 three-bedroom units and 95 two-bedroom condos.

The resort will feature a 100-room hotel and 20 fractional units.

Developers said they expect the first homes on the site to be completed in about 10 months.