million to develop a Florida property it acquired in April, 1999.

The company acquired title to the 172-acre property through foreclosure after a loan default made through its American Safety Reinsurance Ltd. unit.

American Safety said the development of the Harbor Village Golf and Yacht Club will take place in three phases.

It said the first phase will consist of construction of a 142-boat slip marina and 372 residential units, adding that half of the construction is completed.

The insurance underwriter said financing of about $34 million will be obtained for construction of its first phase.

"While we have had several offers to purchase the property, the substantial pre-construction sales activities require that we focus on the construction of the project, rather than its potential sale,'' said President and Chief Executive Lloyd Fox.