A lack of parking spaces means that technical officers have recommended refusal for plans to change the use of publicly owned Bermudiana Beach from tourism to residential.

While the site was originally developed for affordable housing, works were carried out to convert the property into a condo hotel before a review found that the site would yield greater returns as high-end rental units.

The application for a change of use is expected to go before the Development Applications Board today.

However, a report prepared for the DAB said the site did not have enough parking options to meet policy guidelines.

Of the 94 units on the site, 54 would receive a car parking space with the other 40 to be classified as “cycle-only” units, with residents unable to register cars to the apartments.

The report writers said that even with 66 total car parking spots on the property — with proposed additional spaces taken into account — the amount of visitor parking was deficient by 12 spaces.

The report said: “This deficiency is compounded by the fact that the restaurant and pool snack bar area, which have the benefit of a certificate of completion and occupancy, are specifically excluded from the scope of this project.

“If these areas were brought into operation, there would be no allocated parking for staff and clients, resulting in parking congestion off site, which cannot be supported.”

A grounds-in-support document, submitted by Brunel Ltd on behalf of the applicant, the Bermuda Housing Corporation, noted the parking space issue.

“The site has been optimised to accommodate the maximum number of parking spaces without compromising the fire lane access,” it noted.

“We have previously submitted a DAP1 application which we sought to obtain additional parking on the adjacent land owned by the Bermuda Government to the west of this development, which was refused by the planning department and the appeal is on hold.

“We cannot accommodate any additional parking spaces on this site due to the existing site exhausting its limits.”

While the document noted that all of the units had motorcycle parking and noted the proximity to bus stops, which would help to alleviate parking challenges, the report for the DAB said such factors “are not considered” to address the “significant shortfall”.

The report added: “The applicant has been afforded several opportunities to address this matter during the course of the current and previous application and no attempt has been made to provide a meaningful solution.

“For such reasons, the department does not agree the board should utilise its discretion to approve less parking in this instance.”

Concerns were also raised about the density of the site, which contains 21 units per acre, slightly more than the usual limit of 20 per acre.

Although the report stated that while up to 30 units per acre can be allowed if the site is near a commercial zone, a mixed-use zone, the City of Hamilton or public ferry transportation facilities, Bermudiana Beach did not fall into any of those categories.

The units on the site were originally developed for the Grand Atlantic affordable housing project but the plans were scrapped after only two of the 78 units built were sold.

It was later announced that the project would be converted into a boutique condominium hotel and rebranded as the Bermudiana Beach Resort with 94 condo units for sale and 110 hotel keys.

However, in late 2024, the Government jettisoned the project after the study found the hotel model was no longer financially viable.

Instead, it announced that the 94 units — a combination of 25 studio apartments, 25 one-bedroom units, 28 two-bedroom units and 16 three-bedroom units — would be put on the rental market once construction was completed.

Zane DeSilva, the Minister of Housing and Municipalities, formally opened Bermudiana Beach Residences in April 2025.

An application for change of use at the property was made last year, but subsequently withdrawn on a “procedural basis” with a new application submitted this year.

A government spokesman said on May 1, 2025: “With the concurrence of the Department of Planning, the units are occupied pursuant to their existing licence.”

It was announced in January that approximately 72 per cent of the residential units at the property were occupied.