Affordable housing plans for former Plaza Hotel withdrawn
Plans to build 13 affordable housing units in a vacant and fire-damaged building at the Leopards Club International (Bermuda) property in Pembroke have been shelved to find a more cost-effective option.
The Government announced in September 2024 that the public works ministry would collaborate with the Bermuda Housing Corporation on the $4.8 million development at the building owned by, and located next to, the club.
However, a spokesman for the Ministry of Housing and Municipalities told The Royal Gazette this week that the project at the former Plaza Hotel, one of the first Black-owned guesthouses in Bermuda, is to be adapted to meet “updated needs” and to allow a more economical building model to be found.
It is understood that the Bermuda Economic Development Corporation hosted a meeting last night to introduce a company that may be able to carry out the project at a cheaper rate.
The ministry spokesman said: “The planning application for the building owned by the Leopards Club on Cedar Avenue was withdrawn to allow for a full redesign of the proposal.
“This reassessment will ensure the project meets updated needs and can be delivered through a more cost-effective building solution.
“Furthermore, as the project was in the very early stages, no contractors were engaged, no tenders issued and as the formal planning process had not advanced far, there were no objections.
“With that said, the ministry remains committed to increasing the availability of affordable housing and is now evaluating all options to ensure developments are financially responsible, sustainable and aligned with community needs.
“The ministry is developing the 2025-2035 Affordable Housing Plan, which will outline Bermuda’s long-term strategy for expanding housing supply. The former Leopards Club project will form part of that broader plan.
“Once the plan is completed, it will be shared publicly.”
Keino Furbert-Jacobs, a BHC project manager, issued a directive in September to the Department of Planning to withdraw the plans.
Mr Furbert-Jacobs would not confirm to the Gazette whether he knew that the development would proceed at all, but said construction costs remained a challenge.
He said: “I can’t say whether it’s going ahead. At the moment it is being reviewed. We will have more information as time progresses.
“We still have a housing crisis; we are in a conundrum. Construction costs have not gone down since 2000. You see an increase in costs across the board in the country but not an increase in salaries, and where we are today, we see it everywhere.
“There was a slew of construction people who were available but we didn’t lock it in; it was far too early.
“We need to re-evaluate and see what the chances are of an alternative route in terms of the amount of units we could potentially get.
“There could be more units [than the 13 originally announced] developed on the property, but not in the present design.
“It might not even be BHC that does it.
“I would look towards a presentation the housing minister will be making in the coming week and beyond that in the new year on anything related to affordable housing.
“We’re doing the best we can.”
Calvin Smith, the president of the Leopards Club, said: “The development is delayed as they have alternate plans that are cheaper.
“BEDC is having a cocktail presentation and I think we can come to a firm decision following this.
“The Royal Gazette reported last week how Alex DeCouto [the president of construction management firm Greymane] said building costs are between $700 to $1,000 per square foot.
“There is a company coming that says it can offer it for $500 per square foot, so it is worth listening to what they have to say.”
Lieutenant-Colonel David Burch, the former public works minister, announced in September last year, alongside representatives of the Leopards Club and the BHC, the plans for a development of studios and one-bedroom apartments.
He said each unit would contain a bathroom, kitchenette, washing machine and bedroom space, and that residents would also have access to a range of amenities, including storage space, a lounge and self-serving café area, an elevator, a new parking lot, and exterior amenity grounds.
The project was expected to take 22 months. Colonel Burch said the Government would recoup its investment through rental income over several years.
He said the project was made possible by an increase in funding allocated to the BHC. In the last Budget, the Government committed an additional $10 million to the group to accelerate the availability of affordable homes.
Zane DeSilva, the Minister of Housing and Municipalities, provided an update on the Residential Housing Plan 2025-35 in the House of Assembly on November 7.
He said: “We are pursuing a comprehensive and co-ordinated approach to housing, one that combines new construction, the renovation of existing units, modular housing solutions and partnerships with the private sector.”
As of September, the BHC waitlist recorded 304 applicants — 72 critical, 192 urgent and 40 regular.
• To read the ministerial statement addressing the housing crisis, see Related Media
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