Govt. eyes Chelston trade-off
to buy the Chelston home of US Consuls General, it was revealed yesterday.
For Government could use the American responsibility for Longbird Bridge -- due soon for replacement at an estimated cost of $15-20 million -- to offset the price tag on the Chelston mansion and 14-acre estate.
Works Minister Alex Scott said last night: "I certainly envisage that as something which could come up in negotiations -- it's certainly something which would warrant discussion.'' Mr. Scott was staying tight-lipped on the state of negotiations for Chelston and declined to discuss details.
But he added: "When we entered into negotiations with the US, we made the observation that any landlord would make when we were trying to set a fair price for Chelston.'' And Mr. Scott revealed Government had promised to top any offer from private individuals for Paget's Chelston, although he insisted the hoped-for $15 million asking price was over-valuing the property.
He said: "They may be asking $15 million -- but that wouldn't mean Government would be prepared to pay that.'' Mr. Scott added that an assessment by the Bermuda Government in 1997 had set $8-10 million as a fair price and that the US valuation had also been less than $15 million.
He said: "If it went as high as $15 million, we as Government would then have to say if we believed it was worth that. That suggests we would not be prepared to go that high.'' Mr. Scott said that the Island Government "by default'' had spent around $250,000 maintaining the link between St. George's and the Airport with the rest of the Island since the US Navy quit Bermuda in 1995.
He added that notes of agreement between the British and US governments dating back to 1978 and 1980 showed the US still had responsibility for the bridge under the original base leases agreement in the 1940s.
Mr. Scott said: "It would only be natural for me to draw to the US's attention that they are in arrears to us. They owe us money for Longbird Bridge.'' And he added: "The US will have to come up with a $15 million sum to replace that bridge or Works and Engineering will have to do it.
"It's a major thoroughfare and it must be addressed. It would be irresponsible of me to discuss buying Chelston when we're talking about renovations the previous Government were unable to collect on.'' Mr. Scott said: "We would never want Chelston to become a sticking point and I'm sure the Americans view it the same way. We wouldn't want Longbird Bridge to become a sticking point, either.'' He added: "If one is expected to pay millions of dollars out of the public purse, it's equally important to get monies owed to Bermuda put into the public purse.'' But he insisted: "It's not blackmail when you're owed money and you want to collect.'' Mr. Scott was speaking as he announced a new emergency closing system for the Longbird swing bridge, a failsafe against the current electrical system which has shut down in the past.
But he said: "The installation of this emergency closing system in no way eliminates the urgent need for a new bridge.'' Mr. Scott added, however, that the new system would cut delays due to failure of the creaking bridge's current systems in the meantime.
REAL ESTATE RE BRIDGES TRANSPORTATION TRA