A new hotel development in St George’s is set to break ground no later than June, according to Shawn Crockwell.

Mr Crockwell added that Desarrollos has reached agreement on all of its financing arrangements.

However the Minister of Tourism Development and Transport said that the Bermuda Government will have to amend an “anomaly” within the Master Development Agreement (MDA), which speaks to a maximum of three designated sites.

While legislation limits the number of casino licences to three, there is no limit to the number of sites which can be designated.

Mr Crockwell made the announcement at a press conference about the development of a new resort for St George’s, at which he also revealed developers the Desarrollos Hotelco Group will be in Bermuda next month to sign ground leases and financing documents.

Speaking of the MDA’s reference to a maximum of three designated sites, Mr Crockwell told the media: “That is not correct. The Casino Gaming Act actually references a maximum of three casino licences; there are no limits on the amount of resort sites that can be designated as a future casino site.”

He explained that applicants will be subjected to a “two-step process”, only after potential sites are designated will three casino licences be granted.

“I think that it is important to have this clarified and, as a result, a small but important change will be made in the MDA to appropriately reflect the intentions of the Act,” he added.

“I am happy to report that Desarrollos are being proactive on planning issues and are working closely with the Department of Planning with respect to the designs for the St George’s resort,” he said.

“The developers intend to meet with the residents of St George’s and lay out their plans and address any concerns they may have. They will have a collaborative process on this project.”

Mr Crockwell reported that Pink Beach, Ariel Sands and Morgan’s Point developments are also on target.

Jamahl Simmons, the Shadow Minister of Tourism, said last night that he welcomed the news that the developer had reached an agreement in principle for financing, saying the Island is in need of good jobs.

“Bermudians in general and the people of St George’s in particular have been waiting a long time for progress on this project,” he said. “Now it is important that the government not only get shovels in the ground but ensure that Bermudians are the ones with their hands on the shovels and in leadership roles.

“We anticipate that the Department of Workforce Development will, in due course, be liaising with the developer to ensure that the capable, qualified, unemployed Bermudians are well positioned to take advantage of potential opportunities at this site.

“As we welcome this news, the PLP remains committed not just to the putting Bermudians first in jobs and opportunities at this property, but also to the preservation of community access to the beach. With its historical significance and the deep connection to many east end residents, this must continue to be open and accessible.”

Desarrollos were first selected to develop the property in 2014 following an open tender, and by that December it was announced that the hotel would carry the St Regis Starwood brand.

While construction on the project was first set to begin in May of 2015 and take 16 months, the start date of the project has been quietly pushed back.

Last August, Mr Crockwell expressed hopes that site work in St George’s would begin before the end of 2015, with groundwork beginning in the first quarter of this year.

Earlier this month, he said that the developer has been in communication with the planning department, and he believed details about the plan would be revealed in the near future.