luxury hotel on the vacant Bermudiana Hotel site just outside the city boundaries.

The Corporation of Hamilton lodged an objection with the Planning Department, citing among other reasons, the proposed development's closeness to residential areas and "staggering size'' of the office blocks.

It was concerned about the "intolerable level'' of road traffic it believed employees of the Bermuda Financial Centre Limited would generate.

It also felt the centre would cause businesses to leave Hamilton's existing office/retail buildings, benefiting overseas investors at the expense of many Bermudians.

The Bermuda National Trust filed a pro-tem objection saying it needed more time to look at the proposal.

The deadline for objections was 5 p.m. on Friday. The hotel part of the $130-million-plus plans has the official backing of the Tourism Ministry.

But Tourism Minister the Hon. CV (Jim) Woolridge yesterday moved to clarify the Certificate of Approval he lodged with Planning, assuring Government was "highly conscious of the economic and environmental issues relating to the redevelopment of the Bermudiana site''.

In a letter to Planning, Corporation lawyer Mr. Tim Marshall said the proposed office blocks would be higher than any building in Hamilton now.

"The site borders the Corporation's western boundary and, therefore, our clients are deeply concerned about the impact that this massive financial centre will inevitably have on the City of Hamilton,'' Mr. Marshall wrote.

The Corporation did not mind a new hotel being built on the site, but was against "nearly half of the site being devoted to office blocks''.

"With the introduction of office blocks that run from Bermudiana Road to Woodbourne Avenue, there will be no buffer whatsoever between the office buildings and the residential areas,'' the letter said.

The provisions of the site's new "commercial'' zoning must be applied to ensure the amenity and environment of neighbouring residential areas are "fully protected'', Mr. Marshall said.

He went on to write, "Our clients seriously question the need for a development of this magnitude when there is already sufficient commercial/retail space within city precincts...

"The owners (who are mostly Bermudian) of buildings and lots within the city limits face the grim prospect of losing their tenants to areas outside of the city limits.'' The Corporation called for a greater number of residential units to help in "maintaining the integrity'' of the residential neighbourhood along Woodbourne Avenue.

The proposed development was not in keeping with the City of Hamilton Plan of 1984, he concluded.

Trust director Ms Amanda Outerbridge said yesterday the proposed development's plans were highly complex. "We need to look at all sorts of angles,'' she said.

A final decision on whether or not to object would be made in the next few weeks, she said.

Mr. Woolridge issued his clarification on the certificate in response to two recent letters to The Royal Gazette criticising him for granting approval for the project without conducting any feasibility studies.

"In both cases, the writers have deplored what appears to them to be the Minister of Tourism's approval of the Bermuda Financial Centre project `without even as much as a feasibility study to show that a 300-room business hotel is viable', according to Researcher,'' he said in a statement.'' "And Mr. Andrew Trimingham claimed that `the Minister has given the green light to an enormous hotel...apparently without anything resembling a feasibility study or any notion whether or not there is, or may reasonably expected to be, sufficient business traveller demand for a hotel of that size.

"Clearly there is a misunderstanding on the part of both authors as to the procedure required in the approval process.'' Mr. Woolridge said the certificate did not mean a hotel licence would be automatically granted.

The certificate was required in order for developers to begin the planning process, he explained.

"A number of conditions must still be met before a hotel licence is finally issued,'' he said, which included Fire, Health and subsequent Tourism approvals.

"The issue of a hotel licence is subject to the appointment of a hotel operator approved by (me),'' he said.

It is understood Mandarin Oriental and Four Seasons hotel chains have been approached.

Developers of the Bermuda Financial Centre Limited, Winworth Limited, of which the Hon. Michael Winfield and Mr. Fraser Butterworth are directors, submitted their application earlier this month to the Development Applications Board for in-principle approval.

With its entrance on Woodbourne Avenue, just outside the City of Hamilton boundary, the centre's developers are hoping to create the Wall Street of Bermuda.

Developers, say the project could be "the most significant development for Bermuda in many years''. In a cover letter to the DAB, they said they were hoping for a speedy decision given the financial implications of the project.

Developers must meet Forte Hotels $14.5 million purchase price for the property by December 7 or forfeit $1.4 million -- 10 percent of the purchase price.

The Corporation earlier this year objected to the re-zoning of the Bermudiana Hotel property to "commercial'' under the new Development Plan, saying it would create an undesirable, sprawling city.

The Planning Tribunal which heard the case has not given its decision yet. The Bermuda Financial Centre is to include: A five-star hotel offering 300 rooms on nine floors.

Three office buildings with ocean views.

A modern 1,000 seat business convention centre plus meeting halls.

A health spa, swimming pool and squash courts.

Four "town houses'' with private gardens to meet demand for executive housing.

Restaurants and shops.

An underground parking lot.