And the approval of the financial centre by Government planners was described as "a milestone in the revitalisation of the economy'' by Sen. Mike Winfield.

Sen. Winfield is president of Bermuda Financial Centre Ltd. the company behind the change of the former hotel into offices and a new hotel.

He welcomed the board's "approval in principle'' of the scheme adding that the company would follow all conditions placed on the development by the board.

A major hearing was held in February with objections from the National Trust, the Corporation of Hamilton and Hamilton Properties.

At that hearing Hamilton Proeprties lawyer Mr. Alan Dunch suggested that the development would result in "the largest white elephant the Island has ever seen.'' Businessmen fear the centre will take trade from the traditional City of Hamilton neighbouring the development.

Yesterday's decision included seven conditions including the size of the building, parking and keeping the style of the hotel in the Bermudian image.

The $130 million project is expected to employ 350 Bermudians during construction and provide at least another 200 direct permanent jobs.

Sen. Winfield said the indirect "spin offs'' will have an additional and significant positive impact on a large number of local businesses, further enhancing employment opportunities and the economy.

The centre has been designed to complement the local architecture according to Sen. Winfield but he stressed the need to service the complex needs of Bermuda's rapidly expanding international business sector. Close to 40 percent of the office space in the proposed complex has already been committed.

He said: "We appreciate the months of hard work which the members of the board and staff have put into their review of this project.

"Clearly, they have conducted a careful, thorough and detailed evaluation of every aspect of this important project on behalf of all Bermudians.

"We will continue to co-operate with all interested parties to address the outstanding matters raised by the board in issuing the outline approval today.

"We fully accept the board's report and are eager to accommodate its recommendations to ensure an attractive, prosperous and important business centre for the future of Bermuda.'' He added that BFCL officials were looking forward to working with the Corporation of Hamilton and the National Trust to ensure the project proceeds with the enthusiasm of the entire community.

The development is scheduled to include a deluxe, five star hotel, managed by the prestigious Four Season Regent hotel company.

On hearing the favourable decision, Chairman and President of Four Season Regent, Mr. Isadore Sharp said: "We are very pleased to have been advised that the project has now received approval in principle.

"This has been a decision we have all been waiting for and all of us at Four Seasons look forward to working with the BFCL team to bring fruition our plans for the finest hotel of its kind in Bermuda.

"My experience with Bermuda goes back many years and I am delighted to now be involved in a project on your lovely island. We believe this hotel has great potential and look forward to making it a reality.'' Sen. Winfield added: "The approval in principle has added an impartial and important decision to the development of this important facility for Bermuda.

"This, combined with the confidence, encouragement and support we are receiving from a wide cross-section of the community, gives us great enthusiasm and determination.

"As we continue moving ahead, we are committed to making the Bermuda Financial Centre a truly co-operative project that will act as a beacon for new business, as a stimulus for a much needed economic renewal and as a symbol of Bermudian pride in their community and their future.'' Corporation of Hamilton secretary Mr. Roger Sherratt said the Corporation would comment on the decision when it next meets.

But Mr. Sherratt said: "When the Corporation put its case to the board it expressed a number of concerns about the site, mainly about the size of the building and about traffic and parking.

"It has been noted that the board has indicated some conditions which address many of the concerns that the Corporation had, in particular the company is going to be asked to carry out a detailed traffic survey.

"The conditions included that the hotel included a minimum of 300 car and 300 cycle parking spaces and it would not impact on the existing parking on the street.

"Certain limitations on the size of the building have also been included around the perimeter of the property.''