A $2 million scheme to help the Palmetto Hotel and Cottages cater for the disabled has been dropped.

Owner Mr. Edward Amaral said he had called off talks with Canadian developer Mr. Ray Brow.

"I understood over one year ago when Mr. Brow approached me that he had everything in place to proceed with the purchase and conversion of the property.

"I thought it was a great concept, and intended to become a shareholder in the new venture, but more than a year later he still does not have the financing in place.

"Mr. Brow had put a deposit on the property, but his option has run out, and he has lost the deposit.'' Project manager with Hospitality and Care Bermuda, Mr. Brow has developed eight nursing homes and care facilities in Canada.

Last year he told The Royal Gazette of his plans for Palmetto.

They included installing an elevator in the main building, putting in another entrance off the second floor and upgrading the bar, restaurant and lounge.

"Registered nurses will also be on duty 24 hours a day to tend to the elderly or disabled persons' medical needs. And all rooms in the hotel will be made accessible which will include emergency call buttons.'' Renovations would also include a playground for young children and a water slide for older ones, he said.

On Friday, Mr. Amaral was at pains to point out he had no intention of changing the operation of the hotel.

"Palmetto will continue to be run as a hotel and restaurant, catering to both the Bermudian trade and to tourists from overseas,'' he said.