HISTORIC Waterloo House has received a stay of execution as the development proposal for property has been denied the go-ahead.

The application, submitted by Benevides & Associates Architects on behalf of Brickman Property Ltd., proposes to demolish the existing building to construct a three-storey office block that will house 120,000 square feet of office space and lower-level parking for 50 vehicles.

According to public correspondence to the applicants, the Development Applications Board refused to grant planning permission on the basis that the proposal is contrary to language set forth in the 1992 Bermuda Planning Statement.

The statement outlines that the one-acre Waterloo property on Pitts Bay Road sits on a site zoned for tourism and that office development is not permitted as its principal use. Architect David Benevides filed a five-page appeal over the decision, stating that the 1992 Development Plan is "out of date" in that it was based on projections and estimates only until the year 2000.

The appeal goes on to say that the plan did not predict the growth in international business or the decline in tourism and in today's marketplace, the "characteristics of the site and the layout and condition of the buildings are not well suited to modern day tourism development".

Six formal objections to Mr. Benevides' proposal were submitted in July, including one objection from an overseas visitor and five from area residents.

One objector, Judith Wadson, who owns and operates Aggie's Garden & Waterside Cafe located at 108 Pitts Bay Road, told the Mid-Ocean News that reasons for her objections were clear.

"We already have enough office buildings. In my opinion, we don't need another," she said.

"There is going to be a glut of empty office space. The ACE and XL buildings are half empty and from what I've heard, the new development now in construction directly across the street from the Waterloo House hasn't had one buyer yet."

Ms Wadson also feels that Hamilton needs more hotel space to attract visitors to the downtown area.

"Since we don't have the cruise ships coming to Hamilton any more, we need more options for people to come stay and not need to rely on public transportation to enjoy the shops and restaurants," she said.

Mr. Benevides' appeal, however, states that the loss of 70 beds at the Waterloo House will be "more than compensated for" by the increase of beds at the other two sister properties, Coral Beach and Horizons, both located in Paget.

The cost of refurbishing and operating the property, according to Mr. Benevides, would "not be practical or financially viable" and that "unfortunately, 'charm', 'character' and 'quaint' do not pay the bills nor do they meet the needs of the modern traveller."

Objectors or proponents of the appeal have until October 16 to respond to the Ministry of the Environment and Sports, which oversees the Department of Planning.