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House: May deadline for St Regis financing

Tourism Minister Shawn Crockwell

The construction of a resort at the former Club Med site will not commence in May but later this year, Tourism Minister Shawn Crockwell informed the House of Assembly.

The timeline announced in December for the long-awaited development changed due to extended negotiations, Mr Crockwell said.

Questioned at length by Opposition Members of Parliament yesterday, Mr Crockwell said: “We are still looking to have ground broken this year — hopefully toward the end of summer.”

His remarks followed extensive questioning about the Bermuda Tourism Authority that sparked a rebuke from Speaker of the House Randy Horton.

Mr Crockwell told Zane DeSilva, the Shadow Minister for Tourism, that a switch from the original brand company to the new St Regis hotel brand had delayed the Club Med development from starting as soon as hoped.

A deadline for full financing of the development has been set for “the early part of May”.

Starwood Hotels signed an operator’s agreement with the developer, Desarrollos Hotelco Group, “within the last few weeks”, Mr Crockwell told the House.

He said he was informed at the time by Ronald Sutherland, the American consultant who represents the Bermuda Government.

Mr Crockwell also told MPs that the Government was not privy to all details of the agreement between the developer and the hotel brand.

He said the agreement was based in part on unspecified development and operating concessions for the project in St George’s.

Questioned by Opposition Leader Marc Bean, the minister said a government contingent had met recently with local banks to discuss the debts in connection with the development.

The developer has committed more than 50 per cent equity in the property, Mr Crockwell added.

“There are discussions between the brand and the developer in terms of equity, which I am not in a position to discuss,” he said.

It closed a lively round of questioning in which Progressive Labour Party MPs reacted with surprise when the tourism minister told them that the landlord for the Bermuda Tourism Authority had not disclosed to the Government the square footage of the space rented to the BTA.

Mr Crockwell said the landlord, Washington Mall Properties, had declined to share full details with him because it was “commercially sensitive information”, but he agreed to an Opposition request that he ask the BTA to measure the space themselves.

Repeated questions about the BTA’s $180,000 interest-free loan to the Whitfield Group to replace its Front Street venue tent, which was destroyed in last October’s hurricanes, were eventually turned down by Speaker of the House Randy Horton, who said PLP members were asking the same questions repetitiously.

Protests from Mr DeSilva eventually prompted Mr Horton to summon the sergeant-at-arms, whereupon Mr DeSilva took his seat.

Opposition MP Derrick Burgess told him: “The reason we get so many questions is we don’t get any answers. We have an obligation to the people of Bermuda.”

Mr Horton responded: “If the answers are not what you expect, or if there is no answer, we can move on without receiving answers. The people will be able to judge.”

In particular, PLP MPs queried why insurance had not been in place for the tent.

Mr Crockwell said he did not know where such information had come from, but told the House that the BTA had given out many loans for tourism-related services.

Whitfield Group had more than 20 events planned when the tent was destroyed, and needed assistance quickly, he said.

The loan, which covered the cost of a new tent plus shipping and equipment, will be repaid by April 30.

Asked about gaming commissioners, the minister said three were working without pay; a total of five will be appointed.

He said he did not believe the current commissioners would be retroactively paid.

An overseas commissioner has not yet been identified, but will not reside on the Island — instead travelling to Bermuda for meetings.

Regulations for the gaming commission are still being drafted.