The controversial Jumeirah Southlands resort will now be built at Morgan's Point.

Government and developers Southlands Ltd. yesterday signed the land transfer document to relocate the project from the South Shore to the former US Naval Air Station on the Sandys peninsula.

The neglected brownfield site will now be transformed into a five-star resort, shopping village and "world-class 18-hole golf course".

The development has also doubled in size — from the 497-beds of the original design for the South Shore, to 900 rooms in two 'boutique' hotels and a private residence club.

Last night the Bermuda National Trust said it was "heartened" by the move, which Premier Dr. Ewart Brown yesterday admitted could result in the Southlands estate — an "unspoiled jewel" — being turned into a national park.

Stuart Hayward, chairman of the Bermuda Environmental and Sustainability Taskforce (BEST) meanwhile, described the news as "an amazing result".

The transfer involves handing over 37-acres of open space along the South Shore to Government, in exchange for 80 acres of publicly-owned land at Morgan's Point.

Southlands estate owners Southlands Ltd. have also agreed a lease on another 130 acres at the former US baseland, on which will be built a championship golf course.

Announcing the deal at a Press conference yesterday however, there was no timeline or costs given for the clean-up of the former US Naval Air Station — which taxpayers will pay for.

Southlands Ltd. also refused to say how much they paid for the Southlands estate in Warwick. According to a copy of the Land Transfer Notice and Land Valuation Notice obtained by The Royal Gazette, the land was transferred from the Trustees of the Willowbank Foundation on December 16, 2005, for a purchase price which is stated as: 'N/A' (non-applicable).

Craig Christensen, one of the three owners, together with Brian Duperreault and Nelson Hunt, told this newspaper yesterday: "That is a private matter."

The Premier added: "That is something the public does not have a right to know."

What Dr. Brown did say was that for each acre of the South Shore estate, owners Southlands Ltd. will receive two acres of brownfield site at Morgan's Point.

"Essentially, this Agreement is comprised of two parts," said the Premier. "First, we had to determine the value of an acre of land at Southlands when compared with an acre of land at Morgan's Point.

"This was an 'apples and oranges task' but we took advice from experts in the area of hotel development and in site remediation and arrived at an agreed formulation.

"Morgan's Point is some 250 acres, the state of which has been the subject of much commentary since the end of its use as a site for overseas forces in Bermuda.

"Admittedly, this land is not pristine — much has been made of its issues with oil and pollution and the need for remediation.

"Accordingly, when compared with the unspoiled jewel that is Southlands, along with a 1,700 ft-long South Shore beach, there can hardly be any comparison.

"It has been agreed that an acre at Southlands is worth about two acres at Morgan's Point," said Dr. Brown.

"This difficult task was performed and it has been agreed that an acre at Southlands is worth about two acres at Morgan's Point.

"Therefore, the swap of land amounts to 37 acres of Southlands for 80 acres at Morgan's Point — that is the price for the preservation of an area the like of Southlands."

The new resort on the Sandys peninsula will feature two 'boutique' hotels of 450 rooms, a private residence club — most likely fractional ownership — of another 450 suites, a spa, a 'marina shopping village', and a "world-class" 18-hole golf course.

Mr. Christensen said yesterday: "From the outset we have had one objective — we are committed to producing the finest hotel resort experience in Bermuda.

"Today, we acknowledge that that goal is closer to being realised in the form of Morgan's Point.

"The intended swap of the Southlands property for Morgan's Point has been agreed upon for all the right reasons, it is good for Bermuda and Bermudians.

"It will be good for tourism, it is good for the environment and it will be good for us.

"Our vision is to see a transformation take place in the West End — to turn what is now referred to as a 'brownfield site' into a luxury resort with an emerald green golf course that attracts the much-needed hotel visitor to our Island — year-round."

Mr. Christensen added: "We believe that this outcome makes winners of us all."

The lease of 130 acres and land transfer of 80 acres to Southlands Ltd. leaves 40-50 acres of land at Morgan's Point, which covers 250-260 acres.

Although public housing was recommended as part of any development in the draft Sustainable Development Strategy and Implementation Plan, the Premier's Press Secretary Glenn Jones said last night: "There is no designated use for that land presently."

The Premier yesterday confirmed that the Planning application by Southlands Ltd. for an accommodation block in Hunt's Quarry, Warwick — to house up to 500 Jumeirah Southlands staff — was still active.

Dr. Brown told The Royal Gazette: "That application is still in place. Every hotel development (in Bermuda) will be required to provide staff housing. That is across the board."

The Premier however, could not say how much the environmental remediation at Morgan's Point will cost."There's no figure on the clean-up costs but we have determined the public will pay for it," said Dr. Brown.

Acting Environment Minister Derrick Burgess added that although a Request for Proposals (RFP) has been issued to manage the clean-up, Government has "not as of yet" decided on a contractor.