Masterworks Foundation.

The decision provides a permanent home for the foundation which has long kept its rich collection of Bermudian art travelling for lack of a suitable full-time base. In the next few months part of the collection will be shown in Toronto and Nova Scotia.

"I understand the foundation has been looking for a permanent home for some time,'' said Minister of Environment, Development and Opportunity Terry Lister when announcing the Government's decision.

"It has been searching for premises in the right location and of the right character and size to accommodate a multi-purpose gallery, classrooms and ancillary facilities. What better place than a Grade I listed building in the heart of the magnificent Botanical Gardens?'' Masterworks takes over the property on a 21-year lease with the option to renew for an additional 21 years. The foundation will also be responsible for major renovations at the building.

Masterworks' director Tom Butterfield said the project was estimated to cost between $1 and $2 million but he hoped the foundation would move into its new home within two years. "We start cracking tomorrow,'' he said.

Among the renovations will be a new roof and floor for the building and the installation of air conditioning and exterior waterproofing. "This fine historic building affords all of us an opportunity to create a marriage between art and architecture and to bring out their common Bermuda heritage,'' Mr. Butterfield said.

Finding Masterworks a home in the building at Camden has been under negotiation since early 1999 but there were reportedly concerns that the foundation's social events might conflict with Government events at the Premier's official residence.

"For a number of practical reasons, the negotiations and plans floundered along the way -- but the goodwill between the parties remained,'' said Mr.

Lister.

The historically important drying rack and washtub within the structure will be protected as a condition of lease and exterior modifications will conform with regulations for Grade I listed buildings, he added. "I can confirm that Government and the Foundation agree that the refurbishment must not impact in any way on the appearance, character and integrity of this historic building.'' Mr. Butterfield said the foundation will continue to operate its Front Street gallery even after the move to the Arrowroot Factory.

"It's associated with the Artists Up Front Street programme which has been so successful,'' he said. "We would never want to give that up.'' Masterworks' permanent collection has received rave reviews in New York and Philadelphia. Among its pieces are works by world-renowned artists Winslow Homer, Georgia O'Keeffe, Albert Gleizes and Jack Bush.