The battle to develop the Bermudiana Hotel site is heating up.

Yesterday it emerged the Bermuda Financial Centre had sought final planning approval for its $150 million hotel scheme.

And it declared the on-off venture had taken on fresh momentum as talks with investors continued.

"It was a question of leaving the project to wither on the vine or doing some more work. We decided to push ahead,'' said BFCL director Fraser Butterworth.

BFCL originally won planning permission in principle on March 16, 1994.

This was upheld after an appeal battle by protesters, but BFCL was unable to proceed through lack of funds -- despite loans from Argus.

After repeatedly failing to meet loan repayment deadlines, Argus took over the property off Pitt's Bay Road.

BFCL has announced moves to buy back the five-acre property. And now an application for final approval has been sent to the Planning Department.

It has asked for planning permission to last three years -- not the normal two years.

Mr. Butterworth said the latest application did not differ greatly from the earlier one.

"It is better drawn and more thoroughly thought out.'' The scheme still included a hotel, offices and luxury homes -- some 45 apartments.

Mr. Butterworth understood the proposal would go before the Development Applications Board next Wednesday.

"The board wanted us to push ahead with the project so we could reserve planning permission for the site.'' He added: "The project has certainly taken on a momentum. There are several interested parties who the board are dealing with who are interested in the progress of the project.'' But Mr. Butterworth declined to name potential investors.

"It's fair to say that the board is very wary of disclosing too much information until deals are finally put together.

"Too much information leaked or made available has sometimes in the past caused us to find things are not so rosy as imagined.'' Also interested in the Bermudiana has been Villa Development Company, run by Anthony Smith, father of Sport Minister Tim Smith.

But the company's multi-million-dollar office and restaurant scheme was thrown out by planners in May.

This week it emerged Government was under pressure to pave the way for wealthy overseas investors to buy the site.

Argus Insurance said the 60:40 ownership rule was a stumbling block to attracting rich overseas investors to the site.

Under the rule, local companies must be at least 60 percent Bermudian owned -- although the Finance Minister has discretion to vary it.

"We need overseas investment for a property of this size,'' said Argus managing director John Sainsbury. "There is a certain amount of phobia about non-Bermudian ownership of the site.'' Finance Minister Grant Gibbons signalled that an application to relax the 60:40 Bermudian ownership law could be looked on favourably.

In a letter this month to the Planning Department, Mr. Butterworth, from BFCL's agents Butterworth Associates, said there were plans to build 296,447 square feet of offices, split into blocks.

"It is intended that the office building on the corner of Bermudiana/Gorham Road will have an opportunity to be used for some retail/restaurant activity as an alternative to offices.'' BUSINESS BUC PLANNING PLN