Developers behind the long-awaited city hotel at the Par-la-Ville car park in Hamilton should have planning permission by this summer, according to the Corporation of Hamilton.

Bermudian company Pembak, backed by Alan Burland of BCM McAlpine, is still in negotiations with the Corporation, which owns the site, for a lease.

The company wants to build a 140 room business hotel with several dozen condominiums and an underground car park.

It will include an underground pedestrian passage to Queen Street emerging at the library.

Corporation secretary Roger Sherratt said yesterday he expects the company to get planning permission by the summer.

Tourism Minister David Allen said this week the developers should be breaking ground this year, but Mr. Sherratt said he could not be certain if this would happen.

Mr. Sherratt told The Royal Gazette: "We are still involved in active negotiations with the company, and we understand they should be in a position to apply for planning permission for the project very soon.

"We do have to iron out some details regarding the lease itself and negotiations are going on, and we are optimistic they should be concluded fairly soon though they may take a couple of months.

They have indicated they are very keen to move forward as soon as possible.

"Once we've completed the negotiations, there are some permissions to be given, including from the Development Applications Board, and we are hopeful they can move forward."

When asked if he thought the company would break ground this year, Mr. Sherratt said: "The Corporation would like to think they will have the necessary permission by the summer.

"Whether they can get started breaking ground by the end of the year remains to be seen."

In February 2001, the Corporation pulled the plug on an exclusivity agreement it had with Bermuda-based T.G. Investments because it was frustrated at the lack of progress and began looking for a new partner for the project.