Ltd. details how the company is going to proceed with the $350 million development planned for the former Southampton Naval Annex.

The report notes parts of the 250-acre site is contaminated by leaking fuel tanks and that Bassett's Cave needs cleaning up as it was used by the US military to dump sewage and other waste materials.

A number of the houses on the site have asbestos-based materials, another source of possible contamination during the demolition work. Runoff erosion during construction could have a "major adverse impact'' on the environment unless properly controlled, the report states.

"Substantial remediation and clean-up'' will have to be done to the site before construction begins.

The company plans on cleaning up the land, and demolishing most of the buildings, during the first phase of construction. After excavation and dredging of the site, the company will proceed with construction of the golf course and clubhouse, the cottage colony, and the major infrastructure for the remaining development.

Morgan's Harbour will also build part of the marina, and five model homes. In the next phase of development it plans on building 50 residences a year according to demand, until the proposed 318 limit is reached.

The environmental report was completed by Swindon-based Sir William Halcrow and Partners Ltd.