The relocation of the Jumeirah Southlands resort moved a step closer last night as developers revealed negotiations have reached an "advanced" stage.

Craig Christensen of Southlands Ltd. told The Royal Gazette that Government ie. taxpayers, will fund the multi-million dollar clean-up of Morgan's Point as a condition of the land swap.

Government is to retain part of the 260-acre brownfield site for public housing while a PGA standard golf course is also in the blueprint.

Developers Southlands Ltd. will receive a freehold, plus leased land, in exchange for their 37-acre Southlands estate.

Mr. Christensen said last night that the relocation of the project will result in "an entirely different resort development". This will include public access.

"We believe that for any resort in Bermuda to be successful it must have public access," said Mr. Christensen.

"We are fairly close to an agreement, but there are a number of issues with a transaction of this size and complexity that needs to be agreed to the satisfaction of both parties.

"The exact size of Morgan's Point is just over 250 acres due to parts being carved off for the senior housing development, etc.

"Any exchange would result in a freehold exchange, leased land and land retained by Government, primarily for public housing and related amenities."

Public housing is recommended in any development of Morgan's Point in Government's draft Sustainable Development Strategy and Implementation Plan.

Mr. Christensen added: "A world-class golf course would be in the plan."

The Jumeirah Group is said to enthusiastic about the resort's relocation. "They have seen the site and understand the opportunities at Morgan's Point," said Mr. Christensen. "The difference between Southlands and Morgan's Point is that at Southlands, the amenities are naturally created and at Morgan's Point we will have to create them."

He could not disclose what financial transactions are involved at the negotiating table. "We are currently still involved in certain details to be agreed," said Mr. Christensen.

In a statement last night, he said: "Southlands Ltd., the proposed developer of a Jumeirah resort, is engaged in advanced negotiations with the Bermuda Government for an exchange of its Southlands property for clean previously-developed acreage ('brownfield') at Morgan's Point.

"We have been encouraged by the Bermuda Government to consider a land swap for some time. The swap is complex as numerous requirements of both parties need to be met.

"We are hopeful that we can conclude the final hurdles, and remain confident that we can reach agreement shortly.

"We have received considerable support from the community and environmental groups to attempt to make this a reality for the benefit of Bermuda as a whole.

"A move to Morgan's Point will require an entirely different resort development and consequently much of the work at Southlands would not be applicable to Morgan's Point.

"During our negotiations it has always been clear that the Bermuda Government would take responsibility for the clean-up at Morgan's Point and that the planning process to do such has already commenced. Southlands Ltd. remains fully committed to a world-class resort development in Bermuda."

The advanced stage of negotiations between Government, Southlands Ltd. and the Jumeirah Group will be welcomed by environmental campaigners.

Both the Bermuda Environmental and Sustainability Taskforce (BEST) and Greenrock criticised the original plans for the development of greenfield Southlands.

Campaigners said the 311-suite cliffside resort would destroy one of the Island's last remaining areas of open space and wipe out coastal wildlife habitats.

Members of the public, particularly in Warwick, also feared traffic congestion, while the diversion of South Shore Road through a tunnel also provoked protest.

More than 3,200 people signed a BEST petition to 'Save South Shore'.

Developers Southlands Ltd.'s plans for the 497-bed resort also drew criticism that its beachfront suites could be destroyed in the event of hurricane storm surge.

Stuart Hayward, chairman of the Bermuda Environmental and Sustainability Taskforce (BEST), claimed the resort would be "doomed to failure" due to the erosion of the Island's coastline.

While many residents will welcome the news the land swap is on the verge of going ahead, there is a cost to bear.

The Government-owned former US Navy baseland at Morgan's Point is heavily contaminated with asbestos, metals, chemicals and 55,000 gallons of jet fuel.

In 1997, independent consultants J.A. Jones Environmental Services Company estimated the costs of environmental remediation at $15 million.

Opposition MP Dr. Grant Gibbons, Management and Technology Minister in the mid-1990s, has said that taking inflation into account, the bill would now be in excess of $25 million.

Premier Dr. Ewart Brown has confirmed that taxpayers will foot the bill. Dr. Brown told The Royal Gazette two weeks ago: "The Government is going to absorb the costs of the clean-up."

It has also emerged that Government issued an RFP (Request for Proposals) in July for 'client representation services' — for a specialist company to manage the survey and removal of hazardous waste.

Many hope that if Jumeirah Southlands is relocated, Government will then turn the Southlands estate into a national park.