The company entrusted with developing a multi-million dollar resort at the former US Naval Air Annex now has the financing to go ahead with the project.

The head of Morgan's Harbour Investment Limited (MHIL) yesterday made the revelation to The Royal Gazette in a bid to "clear away any misunderstandings about MHIL's position''.

Last week, Bermuda Land Development Company (BLDC) chairman Vince Ingham said that MHIL had not been able to secure financing for the project.

He added that the BLDC, charged by Government with developing the 250-acre site, was considering other alternatives to get the project going.

Mr. Ingham's disclosure last week was the first time the BLDC had revealed a reason why MHIL had not started work on the $250-million project since it was picked to develop the site in March last year. MHIL was chosen as the exclusive bidder after a bidding process among a number of contenders.

Yesterday in a Letter to the Editor to be published in full later this week, MHIL chairman Robert Tucker confirmed that several potential equity partners had dropped out of the project resulting in the company's inability to secure financing.

"The chairman of the BLDC, Mr. Ingham, was perfectly correct in saying that during the exclusivity period, MHIL was not able to secure a firm and binding commitment for equity financing and as a result the exclusive arrangement which MHIL had with the BLDC is no longer in place,'' Mr. Tucker explained.

But he insisted that MHIL, formed by UK-based Renaissance Resorts International, would be able to finance the Morgan's Point project.

"MHIL now has received an executed letter of commitment with a highly reputable US investment and development company which, after six months of intense research and negotiation, is willing to provide the full equity financing package necessary for the Morgan's Harbour project.'' And he added that most of the preliminary work, needed to release the funding for the project, had been completed.

But Mr. Tucker admitted the financial commitment was subject to final conditions such as ratification of the lease.

MHIL was to build a championship golf course, a 200-bed cottage colony, a mixed-use village centre, a marina, 318 residential units, housing for elderly people and three park areas on the former Air Station in Southampton.

Mr. Tucker conceded that without an exclusive agreement between MHIL and BLDC, the company charged with developing the site could consider other proposals.

But he expressed optimism that the Morgan's Harbour Project will still go head.

"However, with its equity financing agreed in principle, MHIL looks forward to resuming discussions with BLDC, confident that the exciting Morgan's Harbour Project can indeed be realised.'' BLDC spokesperson Don Grearson last night told The Royal Gazette that the BLDC had not seen anything on paper outlining MHIL's position and declined to comment on the situation until it received further information.

Robert Tucker