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Government defends its approach to land swap

Government insisted yesterday it had bent over backwards to work with Southlands Ltd. — and denied claims that Premier Ewart Brown had stalled the Morgan's Point land swap deal.

A Government spokesman told The Royal Gazette that Bermudian businessmen Brian Duperreault, Craig Christensen and Nelson Hunt were "running around pretending to be hotel developers" when none of them had ever developed a tourist resort before.

Meanwhile, we can reveal that Dr. Brown has asked the trio to give a presentation of their Morgan's Point plan to all Cabinet ministers next month.

Global insurance chief Mr. Duperreault, chief executive officer of Marsh & McLennan Companies, claimed this week that Dr. Brown had delayed the exchange of the 37-acre Southlands estate in Warwick for 80 acres of Morgan's Point, Southampton, with a litany of demands.

But the spokesman said Southlands Ltd. had been given "their shot" to come up with a viable plan for a five-star resort for Morgan's Point and had failed due to lack of experience.

"In October/November 2008, when they came with their plan, it was crystal clear...they didn't have a clue how to do it," he said.

The three businessmen bought Southlands — one of the Island's largest remaining unspoilt plots — in December 2005 with the idea of building a luxury hotel.

The proposal sparked huge public opposition and it was agreed instead that they would swap the land for part of the former US Naval Air Station at Morgan's Point so Southlands could become a national park.

A land swap agreement was signed by Government and Southlands Ltd. in April 2008 but the exchange has never been legally completed and a special development order allowing a hotel to be built at Southlands remains in place.

The Government spokesman said Southlands Ltd. was told in April 2008 that it needed to get a qualified, experienced development partner on board or the project would falter.

But it didn't sign an agreement with John Ryan and Egbert Perry, of the Ryan Group, until June 2009. The spokesman said Mr. Ryan told Government at that point that the Southlands directors "didn't know what they were doing".

"John Ryan's opening line was: 'You can ignore everything these guys have said and have shown you because the clock starts with me.'"

The Premier made the same claim on ZBM's Let's Talk Bermuda television show on Monday night.

Dr. Brown said of Mr. Ryan: "Now this gentleman is quoted as saying that the clock didn't start until he got here, meaning that, as he said, you know, that nobody really understood the business."

The spokesperson told this newspaper that Government was deeply unhappy with the designer chosen by Southlands Ltd. for its 18-hole golf course at Morgan's Point: Canadian Doug Carrick.

"They introduced his design to Cabinet by saying: 'This is the best golf course designer you've never heard of.' It doesn't instill confidence.

"Signature courses start with Fazio, Faldo. The design is key. Carrick may be good in Winnipeg or somewhere else but we need a name which is a little more of a household name."

He claimed the Southlands directors would not take advice from Government's consultants. "They just wanted to fight with these guys," said the spokesperson. "They [Southlands Ltd.] spent a whole heap of money spinning their wheels."

And he said they refused offers of assistance in attracting partners, including having the Premier and Cabinet Secretary attend meetings. "It would demonstrate to the development partner the Government's commitment. We made that offer on more than one occasion; they never took us up on that."

The spokesperson responded to Mr. Duperreault's claim that overseas developers such as Carl Bazarian had been treated preferentially by saying: "These guys are not in Bazarian's class. The only reason that these guys even now remain in the picture is because they are Bermudians.

"Other developers have been kicked to the kerb when they couldn't deliver."

The spokesperson said Government was having such "extensive involvement" in the plans primarily because 243-acre Morgan's Point is the Island's last remaining plot suited for such large-scale development and is of crucial importance to Bermuda's future tourism industry.

He said the Premier had been "almost under siege from interested development corporations and others" about the former baselands site.

The spokesperson said Dr. Brown had an open mind about the scale of the Morgan's Point resort but felt the plan presented by Southlands Ltd. to the Cabinet subcommittee on the project in December was too big.

Meanwhile, this newspaper has seen a letter dated February 17 to the Southlands directors from Dr. Brown.

It follows a letter from Southlands Ltd. to him dated February 15, which read: "We can wait no longer."

Dr. Brown replied to say a presentation of the plan to the full Cabinet was needed and asked the directors to confirm either March 16 or 23 as their preferred date.

Southlands Ltd. said in a statement last night: "Late this afternoon we were e-mailed a copy of a letter from the Premier inviting us to present to Cabinet in March."

The statement said in response to Dr. Brown's comments on television: "We noted that the Premier mentioned the expertise of our chosen development partner, Mr. John Ryan and Mr. Egbert Perry. Mr. Ryan developed the number one rated hotel in the Caribbean by Conde Nast Traveler.

"More recently, the pair had been awarded the development rights to a 2,000-acre resort by the Antiguan government."