Reef Hotel.

And by the start of next summer, the first phase of the unique hotel and condominium scheme should be complete.

A local company, The Wharf Ltd, is planning to build 21 executive hotel suites and 17 condominiums at the 100-year-old facility.

It is understood they are due to sign a sales' contract with the owners of the premises in the near future -- signalling the start of the venture.

Ian Gordon of Entasis Architecture, who is working for the developers, said the hotel part of the plan would hopefully be up and running by the start of next season.

It will feature executive suites geared to the businessman, with a meeting room, internet facilities, cafe, pool and health spa.

The residential units -- which are expected to come on stream later next year -- will be upmarket homes and both developments will have the added advantage of a ferry stop close by for access to Hamilton.

Planning permission was granted in principle last month and won support of the Department of Tourism, who said it fitted with the aim to diversify guest accommodations to provide more choices.

A rival plan, submitted by Beam Ltd, was turned down because it did not have Tourism's support.

At a recent session of the Development Applications' Board, the application for 21 dwelling units, pool and gazebo was refused as it failed to comply with the Bermuda Plan 1992.

During the Budget debate this week, Tourism Minister David Allen said Government did not want entirely condominium developments, but instead preferred schemes with mixed residential and tourism facilities.

The Palm Reef was forced to close in November 1997, after the owners were faced with a $1 million bill for new fire protection equipment.

PLANNING PLN