A controversial special development order (SDO) for a five-star resort at Southlands "now falls away" thanks to the land swap deal signed this week.

Cabinet secretary Marc Telemaque told The Royal Gazette that the estate in Warwick — described by the Premier as "an unspoiled jewel" — would be incorporated in law into Bermuda's national park system and permission to build on the land would disappear.

Asked if the deal between Government and Southlands Ltd. to exchange the 37-acre pristine plot for 80 acres of brownfield land at Morgan's Point would be made public, he said: "I expect that the agreement will be tabled in the House of Assembly in November.

"Similarly, any and all legislative steps to make Southlands part of the national park system will be carried out. The SDO is specific to that property and with the swap it now falls away. Specific legal advice will be taken on how to effect that also."

Mr. Telemaque added: "The naming of the national park will be addressed by Cabinet and an announcement made in due course."

Environmentalists campaigned hard against a luxury resort being built at Southlands in 2006 — but former Environment Minister Neletha Butterfield granted an SDO the following year.

It was then proposed that Southlands Ltd. developers Craig Christensen, Brian Duperreault and Nelson Hunt hand over their estate to Government in exchange for land at Morgan's Point, the former US Naval Annex on the Southampton/Sandys border.

The deal has taken three years to come to fruition but on Monday it was signed in front of the media at the Cabinet building, when Southlands Ltd. revealed its plans for a $2 billion development at Morgan's Point.

Bermuda Environmental and Sustainability Taskforce (BEST) chairman Stuart Hayward said yesterday: "It's all good news as far as Southlands is concerned.

"I would imagine it would be very difficult for the Government to go back on this expectation that we all have that this is going to be a public park.

"We have learned in these past few years: until something happens, you can't take it as gospel. While we are pleased to see the land swap take place — that was a step in the right direction — what we need is the Southlands property being incorporated into the park system officially. When that happens, we'll cheer for it."

Mr. Hayward said he hoped public feedback would be sought on the plans for Morgan's Point, adding that BEST was concerned so much land was being handed to Southlands Ltd.

The company is getting 80 acres in the exchange and 140 acres on lease. Government will retain 40 acres at the former base land. Mr. Hayward said Government should have kept more so it could be used as a bargaining tool if any further developments are proposed for greenfield sites.

"It's been so well stated that it's the last piece of significant development land in Bermuda," he said. "As it looks now, it will eliminate a huge land bank that the public could have had to offset [future developments]."