million into improvements has been thrashed out.

For Government and Bermuda Properties Ltd., owners of Marriott's Castle Harbour Resort, have worked out a compromise plan thought to be acceptable to both the House of Assembly and the firm.

BPL wanted to remove restrictions protecting golf course land at the Hamilton Parish to allow new developments next to the existing hotel.

And an insider said: "We think we have found a way to remove the land they want to develop -- and keep the rest of the golf course land under the current restrictions.

"An amendment has been worked out which seems to be universally acceptable.'' Last night BPL boss Peter Parker was staying tight-lipped over the agreement and refused all comment.

The compromise was worked out after the Castle Harbour Redevelopment Act hit a snag on the floor of the House last week.

Opposition leader Jennnifer Smith put forward a surpise amendment to the Act asking that BPL seek approval of both the House and Senate if it wanted to dispose of golf course land for any non-tourism-related purpose.

BPL's proposed Act wanted a legal restriction which demands the approval of both Houses of Parliament before it can make any changes to the golf course lifted completely.

The firm insisted it needed the change to secure overseas backing from US-based investment company Donaldson Lufkin Jenrette.

And BPL warned that Marriott Castle Harbour could face closure if a massive cash injection was not made.

During the House debate last week, UBP backbencher Leonard Gibbons told Ms Smith he was not in a position to accept any amendments on behalf of BPL.

And he asked that the House delay proceedings until today to allow talks to take place.

Earlier this month, an appeal against controversial BPL plans for 26 homes, a communal pool and associated work at Ship's Hill, inside the 192-acre Castle Harbour property, was rejected by Environment Minister Harry Soares.

Mr. Soares backed earlier permission granted by the Development Applications Board -- and dismissed the appeal from the National Trust and pressure group Save Open Spaces.

The Ship's Hill site sits over a cave system, home to unique species of shrimp and other marine life.

SOS argued the development risked wrecking the delicate network through pollution.

And the National Trust voiced fears over land development by non-Bermudians, property zoning and the temptation to further develop the site.

But BPL countered that its plans would not damage the cave system -- and said that other concerns raised by the environment watchdogs had already been dealt with through the normal planning process.

ENVIRONMENT ENV