The developers of the Fairmont Hamilton Princess stand to reap $11.2 million in tax breaks if they invest some $40.1 million in improvements to the iconic Hamilton hotel.

Unveiling the second such concession order granted in the last year, Minister Shawn Crockwell told yesterday’s House of Assembly that the marina and renovations “might have been deferred or not undertaken at all without access to concessions”.

Phase one of development is expected to wrap up next month, and phases two and three are hoped to employ up to 300 people at different times over the next two years.

The Hotels Concession (Fairmont Hamilton Princess) Order 2014 covers phase two, slated to commence in September and to be completed at the end of April, 2015, and phase three, to start in the third quarter of 2015 and to close by March 31, 2016.

A new restaurant in the gazebo lounge and a rebuilding of 90 new rooms, a replacement of back-of-house mechanical systems and the renovation of the harbourfront courtyard are among the proposed projects.

To qualify for occupancy tax breaks, the hotel must prove its use of Bermudian employers in accordance with guidelines, with annual audited statements to back them up. Similar conditions are in place for payroll tax breaks that must be used toward the training of Bermudians.

Independent MP Terry Lister gave the Order his “100 percent support”, while Government MP Nandi Davis told the House that listeners might believe money was simply being “given away”.

“If that hotel spends $100,000 on advertising, then that’s what they will get,” she said, adding: “Bermuda is being marketed as well.”

Education and Economic Development Minister Grant Gibbons called the concessions a means of offsetting the developers against taxes on the basis that the money be spent on “things like training Bermudians, marketing the hotel and hiring Bermuda entertainment”, to assure the developers received an adequate return on their investment.”