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Morgan's Point plans stalled

Annex has not been able to secure financing for the project, Bermuda Land Development Company (BLDC) chairman Vince Ingham said yesterday.

Now the quango charged by Government with developing the 250-acre site is considering other alternatives to get the project going, Mr. Ingham said in an interview.

It's the first time the BLDC has revealed a reason why Morgan's Harbour Investment Ltd. (MHIL) has not started work on the $250-million project since it was picked to develop the site in March last year. MHIL was chosen after a bidding process among a number of contenders.

"The project has stalled because they (Morgan's Harbour) have not been able to secure financing,'' Mr. Ingham said. "The important thing is that we no longer have a preferred relationship with Morgan's Harbour. We have not been able to come to an agreement because of financing. There is no formal agreement with MHIL.'' However he said the company, formed by UK-based Renaissance Resorts International Corp., remains a potential candidate for developing the site.

Renaissance chief executive Robert Davies denied the BLDC claim.

"It's not true,'' he said yesterday. "We have a financial partner.'' He would not comment further about the perceived delay of the company's project, saying he did not want to do anything to upset the backers relationship with BLDC.

"I don't want to compromise the relationship,'' he said.

The BLDC board is now considering ways to make development of the site attractive for investors.

"We have gone through a learning curve,'' he said. "We have learned about the economic reality associated with the development. We have spoken with capital sources to get a better understanding to see what it will take to capture their interest in a project in Bermuda.'' He said one drawback was the mandate to develop a total resort. The housing and golf course part of the project were attractive but the hotel and marina development was not. Another drawback was the estimated $10 million in cleanup costs for the site before development can begin.

"Based on that experience there are a number of ideas that we are now pursuing to see if there is another way to approach the development before we conclude what is the preferred approach,'' he said.

Mr. Ingham stressed that MHIL was still in the picture.

"They have done a lot of work,'' he said.

MHIL project was to build a championship golf course, a 200-bed cottage colony, a mixed-use village centre, a marina, 318 residential units, housing for elderly people and three park areas.