The Bermuda Land Development Company is set to spend most of its cash reserves by the end of the year and is hoping for three-year commitments of Government funding to help it plan for the longer term, according to its business plan tabled in the House of Assembly on Friday.

The plan notes that planned capital spending for the year ending March, 2005 will gobble up close to $9 million of its cash reserves and the quango will be left with a surplus of $477,000 at the end of the year.

BLDC?s capital spending plans total $10,187,000 ? $3 million to come from a Government grant ? of which more than $6 million will be spent on residential projects, $1.3 million on commercial projects, $2.7 million on infrastructure and another $75,000 on parks, landscaping and recreation.

?The company has an ambitious plan for the development of housing, commercial space, infrastructure, parks and recreational areas,? the business plan concludes.

?The development of revenue producing assets will help the company get closer to its goal of financial self sufficiency.?

It goes on to say that it was essential that Government continue to provide funding for environmental clean-up and its capital projects if it is to achieve its goals in a timely manner.

?Though inevitably some projects will be delayed by unforeseen circumstances, so that cash outflows may be deferred, taking the Budget as it stands it can be seen that by the end of the year, the company?s cash reserves will be depleted,? summary continues.

?Capital projects and environmental remediation are dependent on Government grants, short term construction financing and long term debt financing.?

It says that the company will not take embark on any construction unless adequate financing is in place.

?The company will be approaching its shareholders to discuss these issues in the coming months. One important aspect of this will be to see what can be done to have grants committed for say a three-year period so that longer term planning becomes more realistic.?

The plan was tabled in response to questions posed by Shadow Minister for Women?s Issues Suzan Holshouser Roberts.

The plan also reports that BLDC will continue with the renovation of 11 three bedroom cottages at the 430 acre Southside, and examining the feasibility of developing a townhouse complex of 15 two bedroom and three bedroom units, as well as a condominium apartment complex of 42 one bedroom units.

It is also working on a master site plan which would see the 128,000 square feet industrial zone be developed over four years.

?Construction of 36,000 square feet has been completed. During the year the company will be designing plans to construct an additional 24,000 square feet of space.?

And, with all of its office space being rented, the company ?will be reviewing plans to develop an office building consisting of approximately 20,000 square feet.?

While rental revenues are expected to increase by roughly $100,000, operating expenses are expected to rise by $1 million because of higher staffing marketing and insurance costs, and the company expects a net operating cash outflow of $844,000 as compared to a net inflow of $300,000 forecast for last fiscal year.

Besides the business plan Works and Engineering Minister Ashfield DeVent also provided a list of BLDC?s 190 tenants, but he omitted rental amounts paid be each one saying that the Company was concerned about confidential tenant information being made public and that the Ministry was seeking legal advice.