Government has received two proposals for an empty East End hotel site.

With the official handover of the former Club Med International property to Government complete, Tourism Minister David Dodwell said the process of finding a new tenant was underway.

Two would-be operators for the location in St. George's have met with Tourism officials and a third is expected to make contact soon.

Mr. Dodwell said: "We are in complete control of the future of the Club Med site.

"Tourism is looking at proposals and concepts for the site and two of these are in. We have met with these two and one more is expected shortly.'' Mr. Dodwell declined to identify the applicants.

"The particular groups that we have already met with have very interesting ideas. They are not traditional types of hotel operators,'' he said.

Once the third proposal is in, the next stage of the process will get underway.

"What we will do then is analyse the proposals to see if they are feasible, what contribution they will make and whether or not they are compatible to St.

George's and, ultimately, will they be for the good of Bermuda as a whole.'' Mr. Dodwell stressed selection of a new tenant had to happen quickly.

"We really need to reach a conclusion as soon as possible so we can set a course for the future.

"By the end of the year I would like to see a concept and financing in place with a view to being able to tell the Country that the process has started.'' The Ministry of Works and Engineering became landlords for the site on October 29 when 11 employees who were maintaining the closed hotel for Club Med International were laid off.

Tourism is responsible for finding potential developers, investors and operators. The goal is to find the one player with the right concept and the right idea for the site plus the necessary investment, said Mr. Dodwell.

Three entities, two of which are North American and one with European and Asian ties, have expressed interest in leasing the site.

The groups had hesitated in moving toward taking over the site while Club Med was in control but following its pullout they opened the discussions with Tourism officials.

But Mr. Dodwell warned that talks with the three groups may not materialise into anything, as there were many factors which could come into play.

They might not have the investment cash, they might have the wrong concept and they might not like Bermuda, he said.

"If none of these come through then we would have to step back and look at the property as a whole.

"My hope is that one of them would come through. I am cautiously optimistic.''