Coco Reef Resort will be required to pay $16,666 rent a month plus 20 percent of its gross income as part of a new lease agreement with Government.

Earlier this week The Royal Gazette revealed that the Paget hotel, which sits on Government property, had its lease extended from 50 years to 120.

The Bermuda College board of governors negotiated the new deal last year. Under the new contract the college will no longer have to pay for the insurance of the hotel's contents or the insurance of the foreshore.

The lease has been branded as "shameful" by the Opposition. And the United Bermuda Party called for it to be tabled in the House of Assembly.

Yesterday Chairman of the Board Walton Brown revealed further information about the new lease.

In response to a Facebook post by Opposition leader Kim Swan, Senator Brown wrote: "With respect to taxpayers' interests, we made a number of modifications to the lease to the benefit of taxpayers.

"Further, the financial structure calls for a $200,000 annual rent, plus 20 percent of gross income. This is one example of the privatisation of one aspect of tourism which contributes funds to the public purse. Prior to the lease, Coco Reef represented a significant drain on the public purse."

He also admitted that taxpayers paid approximately $70,000 for a portion of Coco Reef Resort's electricity bill over the past seven years.

Earlier this week Sen. Brown explained that previous College boards had not adjusted the base annual electricity value of $132,000, to account for changes in Belco's fuel adjustment charge.

The hotel and the college share the same Belco meter. The original design never intended that the college and the former Stonington a hospitality school and hotel would ever be separated.

In response to Mr. Swan's Facebook post Sen. Brown wrote: "We estimate taxpayers lost about $70,000 in not charging the fuel adjustment fee."

Mr. Swan had originally written: "Controversy surrounds the original lease — Auditor questions tendering process — woodland reserve property is approved to build multi-story units.

"Units are reported to be sold off as fractional ownership. Government land to be sold off for profit by a private businessman! Great deal if you can get it!"

Mr. Swan referred to the 2004 Auditor General's report, which recommended the hotel's lease should be re-tendered because it was "considerably more beneficial to (Mr. Jefferis) than the tender document specified".

Mr. Jefferis was awarded the lease after the former Stonington Beach Hotel was offered for tender. But after winning the tender, he was able to renegotiate the terms he had offered. The new lease Mr. Jefferis signed with the Bermuda College more than doubled the length of the previous offer from 21 years to 50 years.

It also reduced the amount of rent to Government, added a 1.9-acre plot of oceanfront land and gave permission to build condominiums for sale.