A Special Development Order has been granted for 130 fractional tourism and residential units at the Fairmont Southampton.

Environment Minister Glenn Blakeney signed off the SDO on February 6 and a notice was placed in Tuesday's Official Gazette.

The hotel development consists of 71 fractional tourism units and 37 residential villas "for sale to non-Bermudians", plus 22 townhouses "for sale only to Bermudians".

The beach club at East Whale Bay will also be revamped and improvements carried out on the 18-hole golf course.

The SDO grants planning permission 'in principle' to the development, subject to certain conditions and a deadline of five years.

The Development Applications Board (DAB) is to have the final say on design, external appearance, access, parking, traffic and landscaping.

The application for final planning permission must also demonstrate "particular care has been taken with the siting, layout and design of the development in order to conserve the natural and scenic qualities of the coastal reserve".

It must also include an Archaeological Assessment and Management Plan for the four Historic Protection Areas on site.

Westend Properties Limited originally applied for planning permission in August of last year. Eight areas of construction are proposed in a phased development:

• Turtle Hill fractional units: 57 units in two/three storey buildings, set around a private complex with arrival plaza, pavilion, swimming pools and clubhouse.

• Turtle Hill residential villas: Seven two-storey villas plus two tennis courts, to the east of Turtle Hill.

• Golf fractional units: To the south of the main hotel, 14 two-storey tourism units will be built on the hillside overlooking the golf course.

• Golf residential villas: 20 two-storey villas plus swimming pool, located north of the golf clubhouse.

• Hilltop residential villas: Ten two-storey villas plus pool, to the north-west of the existing hotel.

• South Road townhouses: 22 units in three two-storey buildings "for Bermudians only", along South Road.

• Beach club redevelopment at East Whale Bay: new beach club, pool bar, swimming pools, water sports storage facility, jacuzzis, cabanas, pergolas.

• Golf Course: A new 18th tee, fairway and green, plus relocation of the 14th green and tee.

In a report accompanying the original planning application, Bermuda-Caribbean Engineering Consultants said the fairway itself will remain intact. The report says: "The overall golf course will remain as a par three 18-hole golf course, much as it exists today. The previous concept of converting the golf course to a branded short game golf course and academy has been abandoned."

Up to 600 neighbouring residents signed a petition objecting to Fairmont's original 2006 plan for 91 golf villas and 54 other units on the course, reducing the number of holes from 18 to ten.

The tourism and residential units are described as "a critical component of Fairmont's restructuring and revitalisation".

Bermuda-Caribbean Engineering Consultants state in their report: "The fractional ownership concept proposes to introduce exciting new ideas into the resort in the form of residential accommodation in the concept of a branded luxury residential club."

The consultants say there will be minimal disruption to the hotel and "no redundancies" resulting from the phased construction.

At press time The Royal Gazette was awaiting comments from Minister Glenn Blakeney.

Norm Mastalir, managing director of Fairmont Hotels & Resorts Bermuda, said the developers had not applied for an SDO but that it was considered because the DAB does not have the discretion to approve development within a recreation zone.

"The minor infringements of the recreational zone are within areas that are extraneous to the 18-hole golf course," he said.

"The granting of planning permission by Special Development Order was required in order to progress the master plan that received wide support from neighbours, club members and the Government."

Mr. Mastalir said: "In-principle approval of the master plan is a crucial step, but it is preliminary in nature. Much additional planning lies ahead and further planning permission must ultimately be granted before we can consider breaking ground."

Asked whether credit was already in place in the current economic climate, he said: "Funding for the project will be addressed during the upcoming planning process."

Mr. Mastalir said the master plan marks a 31 percent increase in tourism units, a 59 percent decrease in homes for non-Bermudians, and an additional 22 townhomes for Bermudians.

When The Royal Gazette asked whether this was an appropriate time to push through with such a project, following the hotel's recent job losses and cost-cutting, Mr. Mastalir said: "This is a very good time to progress the project, so that in future we are prepared to capture the opportunities of an expanded tourism product that attracts additional visitors to the Island.

"This unique development will allow Fairmont to compete against other markets offering similar products at the same luxury level over the long-term. The Government of Bermuda has a stated desire to improve tourism revenue streams and this can be done through remodelling and expanding the tourism product available on the Island.

"Adding these types of products to the offerings of The Fairmont Southampton will make Bermuda more attractive as a destination."