Frustrated business owners are to launch a legal battle to halt their eviction to make way for a housing development in Southside.

They gathered yesterday at the industrial park hoping to have a meeting with Government, landlords Bermuda Land Development Corporation and the developers but neither of the parties showed.

Businesses still have not been given notice to quit the Ship's Wharf site despite developers Bermuda Homes for People saying they intend to break ground in early January on their Harbourside Village project.

Spokesman for the tenants Danny Pereira said legal advice would now be sought.

“We need to know where we stand,” he said.

The site is going to be used for 196 homes - half of which will be sold at a cut price of $200,000 with the rest going at market rate.

John Whiting of Whiting Marine Repairs stressed businesses were not NIMBYS but felt let down after being promised alternative business space by BLDC.

He said: “We are not against the housing development, we just want them to do what they said they were going to do - give us some space.”

Last night BLDC Business Development and Marketing head Richard Calderon said the promised alternative space, across the road from the waterfront site, wouldn't be ready until July or August at the earliest.

And there was further bad news for industrial tenants as they learned the developers are reneging on a promise to assist them with relocation costs after being hit with unexpected bills.

BLDC has requested $500,000 for help with a malfunctioning sewage system while the developers must also put in a fully pressurised fire hydrant system at the request of the fire department costing $400,000.

Cleaning petrol dropped into the ground by tenants could cost developers up to $700,000 while there is another $375,000 worth of erosion work.

Mr. Calderon confirmed tenants, who are on month-to-month contracts, had been surveyed about their needs upon moving based on a timetable which had not been so urgent.

The Royal Gazette understand BLDC had planned to eventually build 15 townhouses on the site and use the cash raised to develop other buildings.

Mr. Calderon said verbal notice had been given to tenants but there was nothing in writing because documents concerning the transfer of the land to Government were not completed.

The Royal Gazette understands under law the transfer must be preceded by an independent appraisal based on market value.

Mr. Calderon said: “Of course we have sympathy with the tenants and not just sympathy. We don't want to lose them as tenants.

“But at the end of the day this project was deemed very important. We all recognise there is a shortage of housing. It's an important development.

“I am hoping and the Government is hoping there will be sufficient warehouse space in time to ensure as many as possible can move into new homes here.”

St. David's MP Suzann Roberts-Holshouser blasted Government and BLDC for not showing up to yesterday's meeting which she had tried to broker.

She said: “BLDC's lack of communication is astounding.

“They lured those tenants down there and promised they would then relocate them. If they don't have a lease they are cancelling a promise to them. That was the reason they moved there in the first place.”

Jim Anthony of food distributors Amber Fisheries said it was an insult to small businesses that nobody had bothered to come from Government to hear the concerns of 35 businesses which employee around 100 employees.

“It's absolutely disrespectful,” he said.

Ralph Saint of Atlantic Imports said: “I wrote a letter to BLDC and never got a response and I wrote a letter to the Works and Engineering permanent secretary and never got a response. That says it all.”

Mrs. Roberts-Holshouser said BLDC, which has Premier Alex Scott and Works and Engineering and Housing Minister Ashfield DeVent on its board, had its hands tied by Government.

Last night Mr. DeVent could not be reached for comment. Mrs. Roberts-Holshouser said she feared the BLDC will not be given adequate compensation by Government for the land.