Everything rides on its success: Walter Roban, the Deputy Premier and Minister of Home Affairs, announces the approval of a special development order for the Fairmont Southampton (Photograph by Akil Simmons)
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.”
In the national interest: an image of proposed placement of units in an application for a special development order for the Fairmont Southampton. The renderings are intended for building massing and location study and do not represent finalised actual architectural design intent of units (Image courtesy of Fairmont Southampton revised master plan)
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.
Westerly view: Colin Campbell, a Bermudian architect and managing director of OBMI Bermuda, was engaged by Westend Properties to create preliminary sketches that would help people visualise proposed units for the Fairmont Southampton site. Westerly view along Harbour View Drive near the entry to the hotel, with golf units on the left (Image courtesy of Westend Properties)
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”.
Fairmont Southampton timeline
December 2019: Gencom, a Miami investment and development company, acquires the Fairmont Southampton by purchasing Westend Properties. Karim Alibhai, Gencom’s founder and principal, says an ambitious programme of renovations is planned.
March 2020: Attractions such as the golf club, spa and restaurants are closed and the hotel lays off staff as the Covid-19 pandemic strikes.
September 2020: The Fairmont Southampton’s closure for renovations, projected to last 18 months, is announced. More than 700 employees will be made redundant.
October 2020: A redundancy payment deadline of October 23 is missed.
November 2020: Curtis Dickinson, then the finance minister, says the Government will cover the severance packages of $10.9 million as a loan so that workers are not left “in the dark” until November 20, the new planned due date.
February 2021: Mr Dickinson confirms that Westend Properties paid the $11 million for redundancies.
July 2021: Changes to the granting of special development orders are approved by legislators. The new process means SDO requests will be advertised with an environmental impact assessment — required by law — for 21 days of public scrutiny but will not automatically be the subject of debate in Parliament. Walter Roban, the home affairs minister, told The Royal Gazette when the amendments were tabled there were “no projects and no developments that I have seen or have been proposed that would benefit from these changes”.
February 2022: David Burt, the Premier, says investors plan to inject more than $200 million into the project and tells MPs he hopes the hotel will reopen by summer 2023, or in time to accommodate large conferences by October. The first step in the process to secure a casino licence is taken.
May 2022: Parliament approves the Fairmont Southampton Hotel Act 2022, which was estimated to deliver tax concessions of between $121 million and $133 million over 15 years. The House of Assembly hears that the Government will give a guarantee of up to $75 million, representing 21 per cent of the redevelopment project estimated cost at that time, which was $376 million.
August 2022: As the hotel marks its 50th anniversary, Fairmont’s area director of sales and marketing, Simon Boden, says significant progress has been made on pre-construction work and hopes that substantive work will begin by the end of the year.
December 2022: Mr Burt tells the House of Assembly that costs of the redevelopment project are thought to have passed $400 million and he expects to be table the guarantee agreement when MPs return the next year. He tells the House: “The developers are still confident that they will be able to progress the opening of the hotel for the 2024 tourism season.”
February 2023: Westend Properties reveals plans for the resort and says “construction is due to begin the next quarter”.
March 2023: The Fairmont Southampton Act 2023 is passed in the House. The Minister of Tourism, Vance Campbell, says the 2022 Act is not in force. MPs hear that tax and customs duty concessions will be structured as rebates rather than the relief outlined in the 2022 Act.
April 2023: A request for a special development order is submitted, seeking in-principle approval for up to 261 tourism and residential units in buildings of two to six storeys. More than 3,800 people sign a petition by April 25, calling for the proposals to be scaled back over fears about impact on the environment. The redevelopment is backed by former premier Sir John Swan and the Bermuda Industrial Union.
July 2023: A revised SDO request is made, this time applying for in-principle approval for up to 250 units — 159 tourism and 91 residential — in buildings of two to four storeys. Community benefits such as improvements to part of the Railway Trail, the installation of additional bluebird boxes and softening a South Road S-bend.
September 2023: A report from the Department of Planning to the Development Applications Board found the proposal was considered to “represent an unsustainable form of development which would result in several adverse environmental effects” that Westend Properties had “failed to demonstrate can or would be satisfactorily mitigated”. It was recommended that the minister did not proceed with making an SDO based on the submitted proposal.
The DAB “unanimously confirmed its wholehearted and complete agreement with the assessment, conclusions and recommendations of the department that the minister should not proceed with making a Special Development Order”.
October 2023: Walter Roban, the Minister of Home Affairs, approves the SDO, noting: “This is an anchor hotel … Everything rides on its success.”
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