A planning application to turn Bermudiana Beach into residential units has been refused over parking and density concerns.

The Bermuda Housing Corporation had sought approval for a change of use of the 94 units on the Warwick property, built as affordable housing and adapted for tourism use, back to residential use.

According to the minutes of the June 3 meeting of the Development Applications Board, a technical officer recommended that the application be turned down. No questions or comments were posed by board members.

The change of use was subsequently refused on the grounds that the development exceeded the maximum permitted density of units for the area and the site came with an inadequate number of parking spaces.

The refusal was affirmed by a DAB decision letter dated June 9. However, the BHC is able to appeal the decision to the Diallo Rabain, the Minister of the Cabinet Office and Digital Innovation, who is responsible for planning.

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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.

In late 2024, the Government jettisoned the project after an assessment found that 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.

The application to change the use of the site was submitted in March, but in a report prepared for the DAB, technical officers said the 66 car parking spaces on the site were inadequate.

The report added: “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.”

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