OBJECTORS have lost their bid to save an historic property on Pitts Bay Road in Hamilton from being demolished.

The Ministry of the Environment, which overseas the Department of Planning, has given the go-ahead for the wrecking ball to swing on Waterloo House, a 70-bed manor house that was once named by Travel and Leisure magazine as the "most sophisticated jewel of a small hotel in Bermuda".

The application, submitted by Benevides & Associates Architects on behalf of Brickman Property Ltd., proposes to demolish the existing building to construct a three-story office block that will house 120,000 square feet of office space and lower-level parking for 50 vehicles.

According to public correspondence to the applicants earlier this year, the Development Applications Board initially refused to grant planning permission on the basis that the proposal is contrary to language set forth in the 1992 Bermuda Planning Statement. The statement outlines that the one-acre Waterloo property sits on a site zoned for tourism and that office development is not permitted as its principal use.

David Benevides filed a five-page appeal to the decision, stating that the 1992 Development Plan is "out of date" in that it was based on projections and estimates only until the year 2000.

The appeal went on to say that the plan did not predict the growth in international business or the decline in tourism and in today's marketplace, the "characteristics of the site and the layout and condition of the buildings are not well suited to modern day tourism development".

There were six formal objections to Benevides' proposal submitted in July, including one objection from an overseas visitor and five from area residents. The objectors were notified in late November that Planning inspector Peter Cuming reviewed Benevides' appeal and gave the project the stamp of approval.

"I made an unaccompanied visit to the site on the 6th of October 2008," said Mr. Cuming in a letter to Environment Minister Glenn Blakeney (pictured). "In my view, the proposal is unobjectionable. Charming as Waterloo House appears, I am satisfied that its layout, scale and topography would hinder its retention as an economically viable tourist facility."

He continued: "The fact that claims for tourist expansion have been made elsewhere in no way affects the consideration of the loss of Waterloo House as a hotel. I have taken into account all other matters raised by they do not affect my overall conclusion. I recommend this appeal to be allowed."

While the planning inspector gave the thumbs-up for the project to move forward, he gave the caveat that the proposed parking plan may need to be reviewed in more detail.

"Concerning the proposal, I acknowledge that the details and scale of parking provision will have to await any detailed planning application," he said.

One of the six objectors, Judith Wadson, who owns and operates Aggie's Garden & Waterside Cafe located at 108 Pitts Bay Road, claimed in October that there is going to be a "glut" of empty office space due to the global economic downturn and the Waterloo House will just add to the landscape of barren buildings.

"The ACE and XL buildings are half empty and from what I've heard, the new development now in construction directly across the street from the Waterloo House hasn't had one buyer yet," she said.

In light of the recent project approval, Ms Wadson is reluctant to give up the fight but feels she is out of options. "Hearing the news is very disappointing but I'm not surprised. I don't have the deep pockets to fight this decision," she said.

In a letter dated November 24 from the Permanent Secretary of the Ministry of Environment, Benevides & Associates was granted planning permission.

Final approval of all matters relating to the design, uses, siting, layout and landscaping of the property will still need to be given by the Department Applications Board.