Developer Gilbert Lopes is in negotiations with Government and Atlantic Development (Bermuda) Ltd. to build a new hotel and affordable housing on a South Shore, Warwick site that has sat derelict for decades.

And local architect Peter Terceira confirmed to The Royal Gazette his company Terceira Quarterly has been asked to work on revised plans for the 13-acre site home of the former Golden Hind resort on behalf of client Atlantic Development Bermuda.

Premier Ewart Brown announced the proposed development at last week's Caribbean Hotel and Tourism Investment Conference, calling it an "exciting public-private partnership".

He said Government is to invest public money in the resort on condition the developer also build 125 affordable housing units.

He did not say how much public money would be given to the developers.

Sources say the amount could be up to $50 million, and it was the developers who approached Government with the plan for low-cost housing.

It's understood there would be a natural division between the luxury 100-room hotel and three to four-storey blocks of two- and three-bedroom condos, plus completely separate entrances; the hotel being elevated slightly from the condos and not right alongside them.

However, sources say the Premier's announcement was seen as somewhat premature because a number of details about the project, including the financing, must still be worked out.

Dr. Brown was supposed to have held a news conference to further discuss the project but The Royal Gazette understands the Atlantic Development representative's flight to Bermuda was cancelled twice.

Gilbert Lopes confirmed to the Gazette he is in discussions to be involved in both the building of the new hotel and the condos on the site, however, he said, "Nothing is final yet".

Mr. Lopes said it would be a "joint venture" between his company and site owners Atlantic Development. He declined to comment further. Atlantic Development is owned by Larry Swenson, a Bermudian, who now lives in Maryland.

Mr. Lopes was involved in the public-private partnership to build about 100 condos at Loughlands in Paget, with an approximate cost of $500,000 each.

Government made a deal with Mr. Lopes to buy all the homes built at Loughlands a total investment of some $50 million.

Sources tell the Gazette the amount of public money involved in the Atlantic Development project may be similar to what was spent on Loughlands.

Dr. Brown is off the Island and questions about the project submitted to Government spokespersons were not answered.

Explaining Government's decision to provide funding, Dr. Brown said at last week's conference: "We want more of our hard-working people to become homeowners, and this developer was in need of capital which was not currently available on the global markets."

Environmentalists have expressed concern about further building and development in an already heavily populated parish.

Dozens of newly built Warwick condos priced around $700,000 and up, have been sitting on the market for months, including the more than 20 new Garden Grove units, as well as the Harbour Vistas, Four Cedars and Sandsong Villas developments.

"It does seem to be an enormously high-density use of that area," Stuart Hayward, chairman of Bermuda Environmental and Sustainability Taskforce (BEST) said.

"High density is one thing for hotel guests who may only be there for a week, but it's a completely different thing for people who are going to be living there year-round."

Mr. Hayward added: "This is something that needs to be very carefully thought out. It's also on top of a cliff so there is a safety issue, but my concern is more about the level of impact on the environment and infrastructure."

He said BEST would be scrutinising the revised plans once they are submitted to the DAB.

Previous plans for a 220-room Grand Atlantic Resort, plus luxury residential and fractional condos on the site of the former Golden Hind resort were granted a Special Development Order (SDO) in June 2007.

It's understood though, that revised plans for the 100-room hotel and 125 two- and three-bedroom low-cost condos will be submitted to Planning.