Bermuda Church Society has been given permission to demolish a prime two-storey building on Front Street and replace it with a new five-storey office and retail development.

The decision means tenants like Harbourfront Restaurant, Aubrey?s jewellers, Wadson?s, and Peniston Brown will need to find new homes.

But Harbourfront could return to the site because because the developers are planning a ground floor restaurant.

Emilio Barbieri, the managing director of the Little Venice Group, which owns Harbourfront, said yesterday he would be interested in moving into the site if it is available.

And Aubrey?s, which has another store on Front Street, is looking at other Hamilton sites.

Bermuda Church Society is hoping to begin demolition of the building by the end of the year and to complete the $10 million development within 18 months.

Leonard Gibbons, who chairs the Anglican Church?s property committee, said because of the overheated construction industry, the Church would wait until it can get a good contractor at the right price.

And building work will also depend on demand for the 23,500 square feet of office space in the development.

Mr. Gibbons, whose real estate company is in the building, said yesterday: ?We are delighted to get planning permission.

?We are still looking for office clients. The demolition date is up in the air, but realistically, and hopefully, we would like to begin by the end of this year.

?We would like to get a commitment for the office space before we do that. We are going to have a restaurant on the ground floor and the office space will have magnificent views of the harbour and Par-la-Ville Park.?

Access to the offices will be through an alley which will be expanded and will run through to the park.

Mr. Barbieri said: ?We don?t really know the situation until we have a date (to move out). They will have to give us a time and then we will proceed.?

Referring to the possibility of taking up the new ground floor restaurant, Mr. Barbieri said: ?If eventually that happens we would definitely be interested.?

Aubrey?s has two stores on Front Street ? 19 and 101 ? but customers have traditionally flocked to the shop threatened with closure.

Linda Gittings, the managing director and part owner of Aubrey?s, said: ?We?ve been here over 40 years so it?s quite sad, but we are looking for other locations in Hamilton.

?We are looking for something in Hamilton at the moment but nothing is written in stone. For years Bermudians seemed to prefer coming to 19 Front Street rather 101 Front Street, and hopefully everything will work out fine. ?We are opening in St. George?s on April 12. This year is going to be a very strong year for Bermuda and we hope to be part of that.?

Bermuda Church Society helps pay pensions, insurance and holiday cover for the Island?s Anglican priests.