A large Indian Laurel tree was removed from Par-la-Ville car park last night for its new home on Front Street, with the future of the north-west Hamilton site hanging in the balance.

Lenders of an $18 million loan are set to take over the property, The Royal Gazette understands.

It is believed the site was used as collateral for a loan provided by Mexico Infrastructure Finance LLC to developer Michael MacLean in his capacity with Par-la-Ville Hotel and Residences Ltd. This was backed by a guarantee by the Corporation of Hamilton.

It is understood that the lenders are now set to take over the property, with some sources saying that could happen as early as today.

There have been legal wranglings over the deal, with Mexico Infrastructure Finance making legal moves against both the Corporation and Mr MacLean.

Senator Michael Fahy, who is heading up the Corporation now the Ministry of Home Affairs has assumed stewardship of it, said that meetings regarding the deal are taking place this week.

The Ministry took on the stewardship role in part because of concerns relating to the Par-la-Ville development and the financing arrangements.

Corporation Secretary Edward Benevides, speaking from his home last night, denied that the property’s change of ownership was as imminent as had been suggested, saying that meetings were scheduled for this week. “We have discussions going on with the lenders but nothing is finalised as yet,” he said.

In 2013, developer Mr MacLean complained in a Royal Gazette article that he was being discriminated against because Finance Minister Bob Richards had announced that he might approve a sovereign financial guarantee that could be as high as $125 million for the Morgan’s Point luxury resort project.

The Royal Gazette reported that Mr MacLean complained that the former Progressive Labour Party administration was set to provide a sovereign guarantee to support a $15 million bridge loan for the St Regis hotel project in Hamilton, but the new administration had refused to proceed.

“Government plans to bring legislation which would allow the Corporation of Hamilton to provide such a guarantee,” The Royal Gazette reported.