Is friction between two Government departments the reason why a $220 million hotel scheme has hit an impasse?

A clash of interests over the best way to use the prime real estate overlooking St. George's is one possible scenario as to why the hoped for Four Seasons Hotel project has stalled after two years of negotiations, according to Opposition Senator Kim Swan.

Neither the development consortium nor Tourism Minister Dr. Ewart Brown were this week willing to expand on the cause of the hold-up to reaching a deal.

The former Club Med resort site has lain empty for almost two decades and become what many consider an eyesore to the town. The St. George's Renaissance Consortium this week released a brief statement reporting it has the finance ready, a five star hotelier in place and is keen to proceed with its plans but said negotiations with the Government had "stalled".

Reacting to the news Sen. Swan said: "I'm very concerned and, from the United Bermuda Party point of view, the redevelopment of this property is an integral part of revitalising tourism in Bermuda and St. George's in particular.

"Despite the length of time that has now transpired on this project, and the real commitment to make something happen, it seems we have run up against a stone wall."

The senator said Government should be keeping the public informed of developments and explain the current hold-up.

"Is it because there is a new minister in town?" he asked, referring to recently appointed Housing and Works and Engineering Minister Sen. Lt. Col. David Burch.

"Is it because we can't get the two ministries (Tourism and Housing/Works and Engineering) talking properly between one another?"

And could the ongoing debate about what might happen to the Town Cut and St. George's in view of the switch from small niche cruise ships to larger Panamax size vessels have some bearing on the deadlock?

In the absence of any statement from Government on what the current development difficulty is, Sen. Swan wondered if it was a stalling tactic to prevent the town from deciding against Panamax cruise ships because it viewed the opportunity to revitalise its economy with a major land-based visitor facility instead. "To see this project taking shape beyond the concept stage and developmental stage would lessen any need for St. George's to be dependent on cruise ships. I hope that delaying this project is not in any way tied into the cruise ship objective."

The arrival of a proposed European-style cultural village at the club Med site, with a 126-bedroom hotel and 110 low-rise homes, piazza and theatres, would create a "vibrant economic hub on land" for the town and reduce the town's dependency on cruise ships, according to Sen. Swan.

He added: "Right now we are left to speculate and that is most unfortunate. What we know is that this scheme is not 'pie in the sky'. But venture capital is not going to sit around and wait for Bermuda to make up its mind. People who are venturing out in a financial way are looking at some point for return on their investment."