Rejected plans to turn an empty Hamilton office building into a 94-room hotel have been allowed to move forward in the planning process.

The proposal by Ay Ay Holdings Bermuda Ltd to convert Victoria Hall, at 11 Victoria Street, in to a nine-storey hotel referred to as Sankofa House was given an “obligatory refusal” by the Development Applications Board earlier this year over its height and lack of setbacks.

However, a planning inspector said in a report that the Department of Planning was supportive of the project, and the developer launched an appeal.

According to an appeal decision dated April 15, Diallo Rabain, the Minister of the Cabinet Office and Digital Innovation, allowed the appeal and granted the project planning approval.

“I fully support the proposal to refurbish the former office building into a new city hotel. This will significantly enhance Bermuda’s tourism product, create job opportunities in the construction and hospitality sectors and add vibrancy to the city’s environment,” Mr Rabain wrote.

“Given the building’s prominent location on an end lot overlooking Victoria Park and City Hall, there is an opportunity to improve the visual impact of this corner building significantly.

“I recognise the potential for this development to positively contribute to the city’s public realm and the importance of it being renovated in accordance with sustainable design principles.

“As such, I have added planning conditions regarding the provision of public art, public realm community benefits and energy efficiency measures.

“I take note of the objector’s concerns with regard to the reliance on natural light from hotel suite windows located on the shared western boundary, which will be compromised should a higher building be built on the adjacent western lot.”

Conditions attached to the approval included that details of the public art components must be submitted and approved by the Department of Planning and full details of a “public realm community benefit” must be submitted and approved by the minister responsible for planning.

According to architect Vanessa Daniel, of the consultancy firm HDH Ltd, the project is intended to breathe new life into the building, which has increasingly showed signs of neglect.

The proposal suggested 40 total employees for the hotel, with about 16 staff for a restaurant at the site.

The plans have won support from the Corporation of Hamilton, which noted that the project stood to create a “significant opportunity to enhance the city and contribute towards developing a more vibrant urban environment”.

However, the application noted that the proposal failed to adhere to “several” policies of the City of Hamilton Plan 2015 and requested that the Department of Planning deny the application as a “soft refusal”, enabling the next steps to be pursued through an appeal.

The hotel plan marks the latest proposal for the block, which was expected to become the world headquarters of the cryptocurrency firm Arbitrade in a 2018 purchase of the $6.5 million property that never went farther.

In 2023, plans surfaced to repurpose the block for an urban farm, while its walkways have provided occasional refuge for the homeless.

The development is one of eight projects that have been given the go-ahead on appeal in the three months up to the end of June that have been published online recently.

An application to build a five-story office block on 4, Front Street — the former Bluck’s building — was rejected by the DAB because the proposal did not include a retail element on the ground floor.

In a June 30 ruling, Mr Rabain noted that retail and restaurant facilities were “encouraged” on ground floors of buildings in the city’s retail district.

However, he added that the site was not located “within the city’s principal shopping area” and was therefore exempt from the rule.

Mr Rabain said: “I also accept the appellant’s argument that a mix of uses would be challenging on this site and therefore support the commercial uses on all floors.

“This proposal will contribute positively to the local economy, providing new Class A office space with a roof top terrace amenity area, and will incorporate traditional architectural features and public art.”

Another planning application rejected by the DAB but approved on appeal will see additional parking spaces on the outskirts of Hamilton.

The plan to demolish a building at 75 Pitts Bay Road and replace it with a ground level car park was supported by Mr Rabain in an April 15 ruling.

Mr Rabain wrote: “I am satisfied that the proposal will address the need for additional parking to serve the businesses in this commercial area.

“I also support the construction of a new sidewalk across the site frontage and landscaping enhancements which will positively contribute to the public realm.”