Plans have been submitted for the development of the derelict Bermudiana Hotel, in the latest phase of a bid to build an office complex for two insurance companies.

ACE Ltd. and EXEL Ltd., ranked among the largest insurers based in Bermuda, submitted the preliminary architect's drawings to the planning department this week.

If they are approved and a private Bill giving the companies permission to by-pass Bermuda's 60/40 rule is passed by MPs the old hotel will be demolished and the area landscaped, before building starts.

Yesterday ACE chairman, president and CEO Brian Duperreault and EXEL's president and CEO Brian O'Hara issued a joint statement on the plans.

"The Bermudiana site has been an issue for a number of years. We have put forward a solid proposition which we hope will be accepted not only by Government, but more importantly by the people of Bermuda.

"The development of this site will have a positive effect on the environment and also create jobs for Bermudians,'' said the statement.

Both companies say they have worked closely with architects Cooper and Gardner to meet regulatory specifications and ensure the office complex is suitable for the prominent site, the statement adds.

It is the second step taken by ACE and EXEL towards developing the area which has lain derelict for years.

Last November the two companies submitted a private bill allowing it to by-pass the 60/40 ownership rule and buy the hotel's owner, Winson Holdings Ltd. from Argus Insurance Company.

The statement added: "The closing date for the purchase of the property by ACE and EXEL will follow the legislative passage of the bill and planning department approval.

"At that time, the existing buildings will be removed immediately and the grounds landscaped.'' The Bermudiana site used to be owned by the Bermuda Financial Centre Ltd.

which was forced to give it up because it could not meet loan repayments.

BFCL is trying to raise cash to put up an alternative bid for the site and is enraged that two non-Bermudian companies could own and develop the land.

It has accused Dutch oil millionaire John Deuss of backing the foreign bid and is calling on MPs to vote against the private bill when the House of Assembly reconvenes next month.

NEW LOOK -- The proposed new look for the derelict Bermudiana Hotel site.