Government has accused the Corporation of Hamilton of trying to block plans for a luxury hotel in Hamilton.

This week world tourism chain the Carlson Group said it planned to build a five star hotel complex with 116 rooms, a posh restaurant, a spa, meeting rooms, 28 luxury condos and a 75,000 square foot office building at the Par-la-Ville car park.

But Mayor Lawson Mapp said the hype was premature says and the Corporation had yet to make a decision.

And he pointed out that a memorandum of understanding signed by Carlson?s local partners Pembak with the Corporation for the Par-la-Ville car park site had been formally terminated last summer.

However Tourism Minister Renee Webb told Government had signed its own exclusivity agreement with the developers and was planning to extend it.

She said: ?The Corporation has been negotiating in them in good faith, now clearly if the Corporation are backing out?

?We got a call from the hoteliers saying they had all the funding in place and they were ready to move on it and the Corporation was not agreeing to that property being there because they want to put a casino there. I am concerned a brand like Regent would not be able to come to Bermuda. I would prefer if that property is developed into a hotel we have something of that calibre here.

?But that?s not a decision for the Government, that?s a decision for the corporation.?

However Mr. Mapp denied the Corporation had eyed up the Par-la-Ville site for gambling.

Mr. Mapp had spoken in favour of having a casino in general terms but since then Government has firmly shut the door on changing the law to make that legal.

Carlson have been working with local developers Pembak.

Pembak President Richard Halsey said the Corporation was being slow to make a decision and now had another bidder was interested.

He said Pembak were still waiting to be given a time to make a presentation to Corporation members.

?I am frustrated with the time its taking but I can understand they are frustrated.

?They waited on us for quite a while. Now we are ready to go, the finance is mostly in place.

?We can?t do much until they make a decision.

?We understand someone is trying to compete with us. We don?t know who.?

On Wednesday Mr. Mapp discussed the hotel plan with Premier Alex Scott but he refused to discuss the details.

Mr. Mapp said: ?There is no agreement, contractual or otherwise, between the Corporation of Hamilton, Pembak Development Ltd or the Carlson Group for the development of Par-la-Ville car park.

?The memorandum of understanding between the Corporation and Pembak was formally terminated by the Corporation on August 25, 2003.

?We really don?t have anything to do with them at the moment but they are making press statements.?

He said the Corporation remained committed to a first class city hotel but it had no interest in or connection to the Belmont or Newstead sites.

In their release earlier this week Carlson had said guests at the city hotel would be able to use the Newstead?s luxury condos and spa and the Belmont golf course after crossing Hamilton Harbour by water taxi.

Mr. Mapp said: ?We are trying to work with them, they were getting funds together but they haven?t got that done. We gave them ample time to get things in order they really cannot be making press statements. We own the land.?

The Carlson Group is one of the largest private tourism conglomerates in the world and owns the Radisson cruise ship group, Park Plaza Hotels, and the Carlson Wagonlit travel agent business. Carlson have expressed interest in linking the hotel with its cruise ships.