Masterworks has moved a little further ahead in its quest for a permanent home for the Foundation's art collection, but global economic uncertainty in the aftermath of September 11 has caused it to reconsider their timeline.

Last week, the Planning Department approved the conversion of the historic Arrowroot Factory in the Botanical Gardens into an art gallery.

But Masterworks estimates $3 to $4 million will have to be found to drive the plan ahead.

Planning approval was a welcome development, however, as the plans to convert the Grade 1 listed historic building were initially opposed by the department.

In approving the decision the Development Applications Board had advised, however, that any alterations to the building's interior must be made in consultation with Bermuda's Historic Buildings Advisory Committee (HBAC).

The Masterworks Foundation had been searching for a permanent home for its impressive art collection - which tends to spend more time in travelling shows outside Bermuda than on the Island - for several years.

Everything seemed to fall into place when the foundation negotiated a lease with Government for the Arrowroot Factory, located in the Botanical Gardens next to Camden, the Premier's official residence. The 21-year lease was announced in February.

But Planning opposed the change of use for the historic building in August after soliciting comments from the HBAC.

"The Arrowroot Factory is a Grade 1 listed building and is considered one of the only surviving buildings that represent the history of the agricultural era in Bermuda," wrote technical officer Meka Steede.

"In addition permitting a change of use would affect the integrity of the historical building and particularly the historical significance of Camden."

Masterworks, however, persuaded the department to think again, pointing out that Minister Terry Lister, Government and all of Parliament had already approved the 21-year lease for the building.

"With all due respect to yourself and the Historic Buildings Advisory Committee, I suggest you save yourself some embarrassment by consulting with your own Minister and Department who have already approved the concept and the lease," Masterworks' trustee Ian Waddington wrote to Planning.

Yesterday, Mr. Waddington was pleased to hear that Planning had elected to support the application.

Mr. Waddington said that Masterworks and the HBAC had reached a compromise which will preserve the outward appearance of the Arrowroot Factory and its agricultural significance.

"We won't be touching anything to do with the original Arrowroot Factory presses and drying racks," said Mr. Waddington. "Those will remain untouched and on display inside so tourists can still look at them and enjoy them."

Mr. Waddington said the majority of the work Masterworks will do to prepare for the gallery will take place at the back of the building in the Fern Garden.

The interior will need upgrading for electrical outlets and such things, he added, but the outside will retain the building's distinct appearance.

However, Mr. Waddington said the timeline for relocating the collection to its permanent home is very uncertain in the aftermath of the attacks in the United States as the Foundation must raise millions.

"It's the worst time for Masterworks as far as finding funding," Mr. Waddington said. "At the moment we're all thinking about the hard times out there in the world and it's very uncertain whether there will continue to be money out there for this kind of thing. But we're hopeful we can pull it off."