The Ministry of Public Works has extended a memorandum of understanding with the proposed developer of the Bermudiana Beach Resort, according to a spokesman.

The MOU between the Bermuda Housing Corporation and developer MacLellan and Associates concerning the redevelopment of the Grand Atlantic complex had been set to expire on Thursday, but the extension will allow the developer another 90 days to continue their strategic planning process.

However, the sole remaining residents of Grand Atlantic have so far refused all offers of relocation.

The spokesman said: “The options given to the couple, Mr and Mrs Marshall, included an offer to transfer the family to a choice of properties valued approximately $200,000 more than their purchase price, a resale of their unit to the Government at a 35 percent return on their investment and an offer to have their unit independently appraised and purchased by the Government with costs borne by the Government. Talks continue to resolve this issue.”

Otherwise, he said the developers have made “tremendous strides” on the project so far, including site visits from overseas interested potential stakeholders, applications for Planning approval, applications for Hotel concessions, engagement letters and letters of interest from contractors, significant progress in contract negotiations with an international hotel operator and notable interest from local banks, individuals and global capital markets.

“All related planning and Hotel Concessions Act applications concerning the repurposed condominium hotel development are being reviewed by the relevant Ministries at this time,” the spokesman said.

“In order to ensure a successful repurposing of the Grand Atlantic property with a proposed opening date of midsummer 2015 for the Bermudiana Beach Resort, the developers, Bermudiana Beach resort and the BHC are collaboratively working to complete all obligations and ensure a successful addition to the Bermuda Tourism market.

“To date the project has generated positive global tourism investment interest and much goodwill in the community and media. It is important to maintain this positive momentum.”

The Grand Atlantic Housing project was initially announced as a combination hotel and affordable housing development. While 78 of the proposed 125 residential units were built, only two of those units were ever sold.

Last year, the Bermuda Housing Corporation sent out a request for information (RFI) for alternate uses for the site. Government announced earlier this year that they signed a memorandum of understanding with MacLellan and Associates including an exclusivity clause to allow the developers to finance the acquisition and associated development costs of the project.

According to recently submitted planning documents, the developers are looking to turn the site into a condominium hotel development, renovating 70 of the units into tourist accommodations and the others into hotel amenities including a restaurant and bar.

The developers also plan to further support and stabilise a nearby cliff face, which had been a major area of concern for opponents of the Grand Atlantic development.