announcing they will not appeal a decision to throw out the scheme.

Last month the Development Applications Board turned down a Bermuda Properties Ltd. plan to build on Catchment Hill.

The DAB refused three planning applications -- to build between 120 and 150 homes at White Crest Hill, which forms part of Catchment Hill, nine homes on Catchment Hill itself, plans for an access roadway and subdividing land.

It cited environmental concerns as being the chief reasons for refusing the applications saying the area was an open space of "major importance''.

Catchment Hill is made up of open spaces, quarries and a water catchment area.

Yesterday, BPL general manager Mr. Peter Parker, said no appeal would be lodged against the homes plan -- effectively killing off the idea.

But he said an appeal would be lodged against the decision to turn down the access road and subdivision -- although any future development will be "years away''.

In abandoning the 150 homes plan, Mr. Parker said it was based on Government's forecast of housing needs outlined in the `Bermuda 2000' Plan - in which Catchment Hill is designated a "major development site''.

"At that time, the Planning Department considered Catchment Hill to be one of the last sites in the eastern parishes suitable for the housing of middle income Bermudians,'' he said.

"BPL recognises that housing needs have changed since Bermuda 2000 was prepared and that its forecast housing requirements need revision.'' He added that BPL will appeal over the access road and subdivision of land adding that Catchment Hill was still an important asset to the company.

"Any future development will be years away and would be limited to the 14 acres of concrete catchment and abandoned quarries, thus retaining the open spaces.'' Mr. Parker said BPL never intended to build on the wooded hillsides of Catchment Hill.

He added: "BPL has no immediate plans for Catchment Hill because the company is concentrating its efforts on the improvements to the Castle Harbour Resort which are considered a high priority for the long-term success of the Marriott Hotel and Bermuda's tourism industry.'' The company unveiled plans with Marriott to build 46 homes on Tucker's Point and Ship's Hill and sell them abroad as part of a $65 million scheme aimed at revitalising the hotel.

The plans, which were given approval under a special order by then Environment Minister Mr. Gerald Simons, have come in for criticism from environmental groups which claim it will damage the ecology of the area.