The Government should withdraw from ruling on a planning application because of an apparent conflict of interest, according to an environmental group.

The Bermuda Environmental Sustainability Taskforce spoke out after Westend Properties submitted a Special Development Order to renovate the Southampton Princess Hotel.

The resort, which shut down in 2021, will undergo a major revamp under the proposal and is seen by the Government as key to revitalising the island’s tourism industry.

The Government has granted Westend millions of dollars in tax breaks to push the development forward, and also backed the company’s proposal to build hundreds of residential units on the environmentally-sensitive property.

The SDO went before the Development Applications Board last Friday, although The Royal Gazette has been unable to confirm the board’s final recommendation.

But planning officials have condemned the plan, claiming that it is “in direct conflict with the strategies, goals and objectives of the Bermuda Plan 2018 and is considered to represent an unsustainable form of development”.

Under recently revised planning regulations, the Minister of Home Affairs can override a DAB recommendation without the consent of Parliament.

Last night a spokeswoman for BEST backed the Department of Planning’s analysis of the SDO, adding that the Government has a conflict of interest on the matter.

The spokeswoman claimed that Christopher Maybury, a wealthy businessman with links to Westend and other hotel developments on the island, had also served as an adviser to David Burt, the Premier, and the ruling Progressive Labour Party.

The spokeswoman said: “Mr Maybury as an investor is welcome and appreciated as are his efforts as a respected adviser to the Premier and the Cabinet.

“However in this particular matter and the development of this particular hotel with the government $75 million guarantee and $133 million in concessions, it is a clear or at least perceived conflict for the PLP decision makers.

“As a consequence of this conflicted relationship with Mr Maybury, it is right and proper that the PLP recuse themselves and hand off the final decision making to objective, impartial individuals who are above reproach in a transparent process that takes full account and respect of the Bermuda Plan 2018.”

The spokeswoman acknowledged that the redevelopment of the hotel had wide backing, but suggested that the Government could strike up a compromise deal with the developer.

She said: “There are many other options for such non-hotel development contemplated by this SDO.

“Virtually everyone wants the hotel to be reopened and enjoy the 700 jobs everyone wants to see.”

She suggested that the Government could “gift” Westend and its subsidiary, Gencom, another property — the Grand Atlantic site — for the development and management of residential units.

The spokeswoman said: “As Gencom has repeatedly stated that the hotel is the priority, they must begin immediate renovations of the hotel and the hotel must be open for business before any further development of non-hotel units.

“Any agreement ultimately reached with Westend must include adequate penalties regarding any delays in renovation and opening of the hotel.

“Having been ‘gifted’ the Grand Atlantic in place of the revised July 2023 SDO, the $75 million guarantee and concessions of $133 million should be withdrawn or reduced significantly.

“It is readily apparent that Gencom’s objective has always been to have the Southampton Princess be a major housing development and not a hotel development, at the expense of conservation land and green space

“It’s time for Bermuda to take control of this major decision, rather than being held hostage by Gencom.”

Last week a Westend representative applauded the island’s revised planning regulations.

A spokeswoman said: “Where a development proposal doesn’t fall within the regular zoning guidelines but is in the national interest, power is granted to the Minister of Home Affairs to approve development through an SDO.

“We are grateful that the process allows for this additional opportunity for review.”