An agreement helping to pave the way for an $80 million hotel redevelopment will be signed between the owners of 9 Beaches and the Bermuda Land Development Company (BLDC) in the next two weeks.

The master development agreement is currently being drafted and is due to be signed the week of June 21.

Speaking in the House of Assembly, Works Minister Derrick Burgess updated the House on the progress of the 9 Beaches development. The partnership between IRC Sandys — the owners of 9 Beaches — and the Nordica Development from Quebec will lead to an $80 million upgrade of the Somerset resort.

The BLDC is a "principal player" in the initiative and falls in the Works portfolio, said Mr. Burgess.

The memorandum of understanding between the BLDC and IRC Sandys was singed on May 14 and both parties met on May 27 to discuss "anticipated timelines, significant milestones, due dates and deliverables by each party".

On Friday, Mr. Burgess said: "Mr. Speaker, a number of aspects of the master development agreement have not been finalised at this juncture.

"However, principal features to be included in the agreement are the payment terms, the issuance of a new lease for 118 years with an option to renew for an additional 131 years, a special development order to change the zoning from tourism to tourism/residential or mixed use under the Bermuda Plan 2008, the total number of units in the redevelopment broken down by number of hotel, fractional and or residential units and a performance bond in favour of BLDC to cover construction of development."

He continued: "The master development agreement will have as its underpinning the best interest of the people of Bermuda. In accordance with the law, it will be brought to this Honourable House for approval, certainly before the current session of the legislature.

"Additionally, discussion are in train between the owners and the Department of Tourism in preparation for a submission to be made before the Cabinet Committee on special hotel developments with respect to concessions that might apply in the case of the development."

Mr. Burgess also said the development at 9 Beaches will provide additional jobs for Bermudians both in construction and resort employment.

He added: "Mr. Speaker, we thank Nordica Development for its expression of confidence in Bermuda, for believing in Bermuda.

"We thank IRC Sandys Limited for its vision, commitment and determination in advancing the 9 Beaches proposal.

"And we thank the BLDC for its unwavering support for this exciting new chapter in Bermuda's tourism history."