PLANS to build the island's first hotel in nearly 40 years moved one step closer yesterday with the announcement of an official agreement between the Corporation of Hamilton and developers behind the proposed Ritz-Carlton.According to Hamilton Mayor Sutherland Madeiros, a development agreement and an agreement for lease — signed with Par-la-Ville Hotel and Residences Ltd. — will allow the development of a five-star hotel, luxury condominiums and underground parking to progress on the Par-la-Ville car park.

Such agreements are typically undertaken to outline how development costs are to be allocated and decisions will be taken on a project.

"We are pleased to have reached this important milestone in bringing a five-star hotel to the City," the Mayor said yesterday.

"The development agreement is an important step, but just the first of a series of events that must take place prior to any development of the site."

The multi-million-dollar project was granted a Special Development Order last year, allowing for the construction of 150 guest rooms and suites plus 60 residential apartments.

However, it was revealed earlier this week that an amendment to the SDO was granted by Environment Minister Neletha Butterfield, increasing the scale of the hotel from nine to ten storeys.

The new plans will feature 160 rooms and suites plus 77 luxury apartments of one-, two-, and three-bedroom units.