Government has given its backing for a $350 million luxury hotel and condominium development to be built in Hamilton.

The Corporation of Hamilton had already signed a 120-year lease — renewable to 262 years — with developers to construct the new resort on the Par-la-Ville car park site.

But under new retroactive laws passed by Government last month, any Corporation lease longer than 21 years has to be approved by Parliament before it can go ahead.

Once the Act came into force, the Corporation had 14 days to submit to Government all land leases for more than 21 years, as well as outright land sales, for review by the Minister who is then required to table them in Parliament.

The new law was condemned by developer Michael Maclean who said that the additional red tape could deter potential investors.

But yesterday Deputy Premier Michael Dunkley tabled a motion in the House of Assembly to authorise the Corporation to give an $18 million guarantee to the developers for the purpose of getting the project off the ground.

The motion will now be debated by MPs next week.

Home Affairs Minister Michael Fahy yesterday said the project would “add a boost to the economy by creating much needed jobs” and also increase the Island’s hotel bed stock.

“Today’s motion demonstrates the Government’s support for the project in aiding the developer to raise the necessary financing to bring this project to fruition,” Mr Fahy said.

“It is intended that the guarantee is subject to very specific criteria and the Corporation of Hamilton will be required to conduct thorough due diligence, to the satisfaction of the Bermuda Government, before execution of what is essentially a collateralised mortgage.”