A Special Development Order has been granted for a ten-storey 'condominium hotel' within yards of the House of Assembly and Cabinet building.

The 81-unit development is to be built on the corner of Court Street and Reid Street. It will house 42 'hotel condominiums', 39 'residences', plus a restaurant and spa. The SDO for Stonehaven Development Condominium Hotel, granted by Environment Minister El James on Tuesday, marks the 12th SDO to be issued since July 2003.

Guidelines state they should only be issued in cases of "strategic, national importance or priority".

In January, Government approved an SDO for 66 luxury holiday apartments at Coco Reef, giving its reason as the "importance" of the development to the Island's tourism product, even though tourists will only occupy 'Coco Villas' for six months of the year.

Yesterday, Government gave the same reason for the SDO for the Stonehaven Development Condominium Hotel, although the developers' business consultants ARP say the hotel will cater predominantly for business executives.

A Government spokesman told The Royal Gazette: "As the development is important to the improvement of Bermuda's tourism product, it was determined that allowing the development via an SDO was in the interest in the country as a whole."

Yesterday, The Royal Gazette requested more information about the project from the developers via architects Botelho Wood. We received no reply by the time of going to press. One of the conditions of the SDO however, is that the developers must "satisfy both Ministers (Tourism and Environment) that the applicant will make adequate provision for staff housing".

There is no mention as yet of where this could be located. A Government spokesman said: "The developer has not yet submitted the plans required by paragraph 3 (2)(b)."

The condo hotel, on the site of the former Canadian Hotel, will be similar to 'aparthotels' in cities around the world in offering business executives both short and long-term accommodation. It is described as introducing "a new form of tourism and residential use to Bermuda".

"The aim is to provide five-star living accommodations with full hotel amenities. The hotel amenities include a world-class restaurant, concierge and exceptional spa experience," said ARP.

"The target population for the condominium hotel is the business person that is on Island, either for a brief stay, or for two to three years."

The hotel will cover 23,522 sq. fat and contain 81 one and two-bedroom units.

There will also be 39 underground car parking spaces.

There was no mention of an Environment Impact Statement or Traffic Impact Study in the SDO published yesterday in the Official Gazette.

But a Government spokesman said: "An Environmental Impact Statement was not requested, as the site is currently fully developed, and an EIS was not considered necessary."

He added: "The SDO provides the developer with approval in principle. Paragraph 3 (2)(b) of the SDO states that design, external appearance, access, parking, traffic and landscaping are reserved matters to be determined at the Final Approval stage and shall be to the satisfaction of the Development Applications Board.

"A Traffic Impact Study may be required by the Board at this stage."

Among other conditions of the SDO are that the developers must landscape the surrounding area with trees and lighting, and install a public art feature.

The City of Hamilton Plan 2001 seeks to encourage more residential development in the capital to "develop Hamilton as a vibrant, dynamic and livable capital city".

The Plan also recognises the need for business accommodation in the city, stating: "There is demand in or near the City for tourist accommodation for visiting business people."

At the same time however, it also aims to "protect and enhance buildings of special architectural or historical interest and Historic Areas from unsympathetic development".

Landmarks listed include the Cabinet Office and House of Assembly. Although the proposed ten-storey development is not in a view corridor of the Anglican Cathedral, its proximity to the Cabinet building and House of Assembly could cause concern.

Yesterday, Shadow Environment Minister Cole Simons accused Government of having "no respect for Bermuda's Planning laws".

He called for more transparency in the decision-making process.

The Royal Gazette's A Right To Know: Giving People Power campaign is calling for public access to information legislation as part of a move to improve transparency and good governance.

Mr. Simons said: "Here we go again, nothing has changed. Government are just indiscriminate, going about business as they like, with no respect for Bermuda's Planning laws.

"There's no transparency. It's just business as usual, circumventing Bermuda's Planning laws."

The condo hotel however, was welcomed by City Mayor Sutherland Madeiros.