A special development order for the Fairmont Southampton Hotel that “stands to be the largest construction project in Bermuda’s history”, paving the way for up to 250 tourism and residential units, has been approved by the Minister of Home Affairs.

Walter Roban announced his decision yesterday, which he said came after “much consideration”.

“This is an anchor hotel,” Mr Roban said at a press conference attended by David Burt and several members of the Government. “Everything rides on its success.”

Reopening the hotel is the first priority for a project that will lead to “20-something years of long-term development”.

He deferred to the owners of the site, Westend Properties, on when the hotel would be back in business, but said the project was fully financed.

Westend did not give a timeline, but issued a statement saying that it “understands that this was a difficult decision for the Government” and that it was “very much looking forward to moving ahead on the Southampton project”.

“We respect that the SDO process in Bermuda is complex, but necessary; we appreciated the feedback we received from all parties, including the public, and made amendments to our original application in response to that feedback.”

The company added: “We are committed to fulfilling the conditions associated with the granting of the SDO, including ensuring that the reopening of the hotel is our foremost priority.”

Mr Roban said his decision, which overrode recommendation from the planning department and the Development Applications Board, was in “the national interest and the best interests of the majority of Bermuda residents”.

He stated that he “clearly did not agree with their conclusions” on turning down the SDO, adding: “I came to a different conclusion that I felt would ensure the long-term success of the country”.

Mr Roban insisted his decision had not overridden planning officials and objectors.

“I reject that proposition,” he said. “Those submissions have actually been fed into this SDO.”

He cited an estimate by PricewaterhouseCoopers that the redevelopment at the island’s biggest resort, closed since 2020, would deliver economic impact of $1.4 billion — with roughly $300 million attributable to job creation and $1.1 billion to “the broader impact of the demand for local services”.

Mr Roban acknowledged opposition to the development from conservation groups and residents.

However he said that, as the minister responsible for the environment, “I want to assure the public that I am mindful of these concerns, by including conditions in the SDO that will provide the proper checks and balances to ensure that most concerns are addressed”.

Mr Roban added economic priorities “stand strong” in his decision to give the green light to the project, which he said would secure “a more vibrant future for our country”, delivering “desperately needed tourism beds” and “at least 100 long-term construction jobs”, along with “at least 57 permanent jobs for hospitality”.

He explained: “As the Government continues the execution of the economic recovery plan and, by extension, the economic development strategy, it is critical that we remain focused on supporting sustainable economic growth, employment and more significant economic activity for all Bermuda’s residents.

“Approving this SDO will help strengthen Bermuda’s global visibility and competitiveness as a tourism destination and promote future investment in our island.”

Westend Properties earlier submitted a request for in-principle approval to add up to 159 tourism and 91 residential units in buildings of two to four storeys at the Fairmont Southampton, where the 593-room hotel has been shuttered since the advent of the Covid-19 froze Bermuda’s tourism industry.

The SDO for the “iconic” property went out for public consultation in April.

The DAB last month agreed with a recommendation from the Department of Planning that the minister should not approve an SDO based on the proposals — with the Bermuda National Trust urging Mr Roban to “do the right thing” and reject it.

Mr Roban characterised the development as a continuation of a longstanding trend in Bermuda tourism.

“This is not the most unique property of this type, combining a hotel with residences,” he said.

He referred to developments such as Rosewood Bermuda and The Loren, adding: “This model was well established in Bermuda over the past 20 years.”

He outlined conservation management plans for the site which he said incorporated environmental concerns.

“The property of this Southampton hotel, just to be clear, is not by far an example of excellent environmental stewardship.”

He added: “Little attention has been made over the years to ensure the preservation of the native quality of the open space.”

Mr Roban also referenced the island’s need to increase its numbers.

“It is well known that Bermuda is facing population challenges, which include an ageing population, lower fertility rates, and more of our young people moving overseas,” he said.

“The Government aims to increase the population by some 8,400 people over the next five years.

“In support of this, the properties included for purchase will provide more space for up to 247 residents to live.”

He said that economic growth without additional housing would lead to “unsustainable increases in rent, as we are seeing now”.

Although the SDO has been approved, Mr Roban said the public would be able to see a new version of the development plan and its conditions online “once it has been drafted — and we expect that to be done in the next couple of weeks”.

He outlined three phases to the project, beginning with the Turtle Hill site and golf tourism units, followed by villas, and residential South Road town homes for phase three.

No units will be occupied until the hotel is refurbished and reopened.

Before any planning application is submitted, the SDO requires the completion of a raft of conditions for conservation, improvements to the Railway Trail, and fencing around an historic protection area on Turtle Hill.

Mr Roban said the first planning application to be submitted would need extensive details for the site, including the type of tourism accommodation and whether units could be used as residences for part of each year.

Traffic and pedestrian access, a transport plan and a new parking plan cutting the number of car parking spaces to “a practical minimum”, are also required.

Developers must produce an energy statement with the minimum amount of renewable energy for the resort, and a sewage, water and wastewater management plan.

Bermuda Waterworks has an in-principle agreement to supply the entire site.

The site will have to show a drainage strategy, a waste management plan, an archaeological assessment and a “strategic construction environmental management plan”.

The developer will be required to track the vibration from construction on neighbouring properties.

Mr Roban also said they would be required to show a strategy for public engagement “identifying how the local community will be kept updated on the project and informed when development is due to take place and how neighbours can arrange for the developer to arrange for any repairs or cleaning of their property if affected by construction works”.