A procedural glitch suspended yesterday's Senate debate into the lease agreement between the Bermuda Land Development Company and the company entrusted with the development of Daniel's Head.

Opposition Sen. Terry Lister's presentation on the matter was interrupted midway when it was discovered that the issue is listed to be debated in the House of Assembly this Friday.

"I'm going to have to stop you,'' Senate President Alf Oughton told Sen.

Lister. "This is on the order paper for the House of Assembly on June 26. If you proceed, we will be going before the House of Assembly.'' Independent Sen. Walwyn Hughes, a BLDC member, warned the Senate that debate had to take place on the matter before the session ended.

"It would be disastrous if we cannot get back to this to debate it,'' Sen.

Hughes added. "I'm just trying to protect the BLDC. I would hate to see this put off until the fall and Mr. Selengut (the resort's developer) take his $8 million and go elsewhere.'' During his presentation Sen. Lister told the Senators that it was hoped that construction on the project, to be named Destination Village, would commence this fall so that the ecologically friendly resort could open by the fall of 1999.

In order to avoid putting the $8 million dollar deal in jeopardy, Sen. Lister suggested that his motion that Senate take note of the agreement of the ground lease between the BLDC and Destination Villages Daniel's Head Bermuda Limited be amended.

"I suggest we remove the `take note' and change it to approve it,'' he said.

And Opposition Senate Leader Milton Scott requested that the debate be suspended so Senators could return next Wednesday to finish the discussions on the lease. If the matter was not amended and suspended, Senators would not be able to revisit the issue.

"I hope the House will approve it on Friday and we can then deal with it,'' Sen. Oughton added.

Before the debate was stopped, Sen. Lister told his colleagues that the environmentally friendly resort would consist of cottages, canvas-topped units -- with some of them being built right on the water -- and a craft and recycling centre.

"It will attract a different market and therefore will not compete with the cottage colonies already in the West End,'' he explained.

The two parties agreed to a 60 year lease where the BLDC will receive a minimum of $200,000 rent per year.

"The tenant has the right to extend the lease for another 35 years, but they must pay an extension fee,'' Sen. Lister said.

And he said that the public would have access to the beach at Daniel's Head.

A second motion moved by Sen. Lister also sparked controversy in the Upper House.

The motion that the Senate take note of the conditions surrounding the Ban on Imported Milk in Bermuda was yesterday deemed to close to a previous matter debated by Senators. In December the Senate discussed the Importation of Milk Prohibition Act.

"Yours sounds like it refers directly to it,'' Sen. Oughton said.

But Sen. Lister maintained that his motion and one put forth by Community Affairs Minister Yvette Swan asking the Senate to take note of the report entitled `An Analysis of the Bermuda Dairy Industry' were similar.

"They are similar therefore if mine has to be withdrawn then hers has to,'' he said.

Senate report: Page 6