Just one development proposal was received yesterday for the 17-acre former Canadian Forces base at Daniel's Head.

And at least one other prospective developer said his group pulled out because of continuing protests from the Sandys Action Group over the use of the property.

Of five development teams short listed in May by the Land Development Transition Office, only Florida-based Grand Reserve Spa Associates Ltd.

submitted a proposal by yesterday's deadline.

It plans to set up business in Bermuda as The Bermuda Spa Associates Ltd. and to develop the site into a tourism development with 57 luxury accommodations.

"Attrition among the short listed development teams was expected, particularly given the political controversy surrounding the Daniel's Head site,'' Finance Minister Grant Gibbons said yesterday. "Nevertheless, the Government is committed to a process that will evaluate Bermuda Spa's proposal in terms of providing jobs and new career opportunities for our people and to strengthening our tourism industry and the economy particularly in the West End.'' J.C. (Kit) Astwood, a principal of the Daniel's Head Club Co., which wanted to build a cottage colony and beach club at the former Canadian Navy base, said his group pulled out because of the controversy with SAG, which wants a community centre and open access to the beaches on the site.

"We gave a lot of thought to the general state of tourism and we wanted to add more rooms to the bed bank,'' Mr. Astwood said. "That idea is very appealing in the long term, but not in the short term.'' "However with the feelings running in Somerset, I had a talk with the Lister family to see if there was a particular line that could be drawn.'' The Lister family includes MPs Walter and Dennis Lister and Sen. Terry Lister.

Members of the family are prominent in SAG.

"We wanted to see if we could do what the community had in mind and what we wanted to do in the longer term.'' Mr. Astwood's group intended to build a cottage colony and spa and a marine centre for things like scuba diving, snorkelling and sailing.

"We withdrew it on the basis that it would be best to try to settle this matter concurrently because time is on our side,'' he said.

The Royal Gazette understands that another group has also withdrawn its proposed cottage colony and conference centre for similar reasons.

The Daniel's Head Development Team of Bermuda, was made up of realtor Arthur Jones of Jones Waddington Ltd., Sea-Land Construction Ltd., and Richard Bath Associates.

"Originally we submitted the proposal back in 1993,'' Mr. Jones said last night. "They had offered the property back then but they (Government) took it off again and included it with the rest of the Base lands.

"We saw a similar thing possibly happening again so we decided it wasn't worth pursuing at this point.'' Sandys Action Group spokesman Cordell Brangman said he was pleased with that outcome.

"That's good news for us,'' he said. "We put in a proposal which outlined overall what we thought Daniel's Head would be best suited for as far as the community as a whole.

"I hope our proposal that we delivered on Thursday is there as well.''