The West End Development Corporation (Wedco) is to push ahead with housing projects this year but say plans are seriously hampered by laws forbidding leases longer than 21 years.

The latest annual report said it was a major stumbling block in negotiations with developers who say the time limit is putting them off.

Works and Engineering and Housing Minister Ashfield DeVent said the 21-year limit is being reviewed but Wedco say time is a factor.

The report said the 150-year-old Victualling Yard was at risk unless Government gave its approval to renovate.

Wedco General Manager Lloyd Telford said the Victualling Yard, which is adjacent to the Frog and Onion pub, had crumbling walls.

The 2004 annual report, released last week, said of the 21-year leases: ?This remains a major stumbling block in discussions with potential local and overseas developers who regard the present limit as insufficient to provide the necessary return on the substantial capital required to restore and develop the historic properties such as the Victualling Yard.

?Success in attracting such investment is critical to Wedco?s long-term ability to develop, maintain and improve facilities and services.?

The report also calls on Government to approve Wedco?s 2020 master plan but Mr. DeVent said Cabinet had rejected it ages ago but were still waiting for the quango to submit a new one. However understands amendments were submitted but Wedco?s plan, which was submitted around four years ago and has not been released, sits on the drawing board because it clashes with the current Bermuda Development Plan and Wedco is waiting for the new one to be drawn up.

Mr. Telford said the 2020 plan envisaged new homes, commercial space and more recreational facilities.

However he said work would probably begin in the first quarter of 2005 on converting five units in Dockyard Terraces to two and three-bed townhouses with work likely to take six to nine months.

The project is going through the planning process and the units will be available at market level rents.

He said: ?The project will not be straight forward, you have serious restoration components.?

Also planned are ten loft and work spaces at North Basin Nine by the boat yard but he said the design had yet to be perfected. ?We are pushing hard to do this in 2005.?

Wedco also want to build 13 two- and three-bed units for rent in Boaz Island Village.

?It should be going to bids in February, 2005 with work starting that year.?

He said income from housing was needed to finance other Wedco projects as well as help upgrade rundown property.

Wedco wants to house two of the mega-cruise ships which are coming on line but another berth will have to be built.

Mr. Telford said: ?We are aiming for roll-out in 2007. Those cruise ships are absolutely vital. It?s strategic, not just for Dockyard but for Bermuda.?

He said when the large ships were in Dockyard between 2001 and 2003 shops were recording steady profits.

Wedco is firmly behind the concept of seven-day a week cruise ship presence said Mr. Telford throughout a 32-week season.

Also planned is 21,000 square feet of extra retail floor space in the Clocktower Mall.

He said the West End had an opportunity to offer relaxed shopping without all the parking and traffic hassles of Hamilton.

Wedco also has its eye on several other properties including former prison Casemates which belongs to Works and Engineering and has sat largely idle since Westgate was built.

Dilapidated properties on Pender Road are also a sore point with Wedco wanting to demolish them and redevelop and landscape the area to brighten up the entrance to Dockyard.

Wedco is also seeking to remove the hazardous waste plant at Sallyport which they say conflicts with the aim of creating a thriving community.

But Mr. DeVent said he wanted to merge the housing arm of both Wedco and the Bermuda Land Development Corporation into the Bermuda Housing Corporation who he said had more experience in handling housing.

The plan has yet to get Cabinet approval but Mr. DeVent said the appointment of former Housing Minister David Burch to head Wedco as well as deputy chairman of BHC was an attempt to get the ball rolling.

?We need to look at the whole complete package and that?s what?s being done at the moment.?

He denied a merging of all the public housing bodies would delay any housing projects.

Mr. DeVent said: ?Wedco can bring plans to me for Cabinet approval.?

He said the Pender Road properties are historical which complicated plans to redevelop the area but again he was open to suggestions.

Several attempts to contact Col. Burch for comment were unsuccessful.