Good Afternoon everyone, I am grateful for your attendance today.
I am pleased to announce that the Desarrollos Hotelco Group, the developers for the St. George’s resort, has reached agreement in principle on all of their financing arrangements for this historic development. Financing with an International bank is progressing toward completion with all normal, required documentation to be finalized over the next few weeks.
Desarrollos are expected to return to Bermuda next month to sign the ground leases with the Ministry of Public Works and to also sign documents with regard to the financing.
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. The developers intend to meet with the residents of St. George’s and lay out their plans and address any concerns they may have. This will be a collaborative process.
We are hoping for ground breaking no later than June of this year.
Desarrollos have engaged local architects and construction companies as it relates to this project.
As you may recall, the Government of Bermuda has a Master Development Agreement (MDA) with Hotelco Bermuda Holding Ltd., a subsidiary of the Desarollos Hotelco Group.
We have identified an anomaly within the MDA, which speaks to a maximum of three designated sites. That is not correct.
The St. George’s Resort Act 2015 actually references a maximum of three Casino Licenses; there are no limits on the amount of resort sites that can be designated as a future casino site. Obviously this will depend on how many applications we receive and if the applicant meets the criteria. Depending on the number and quality of applications, there can be more than three designated sites.
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.