09
Jul
2008
A very big, shuttered-up building on the top of the hill near Fort St. Catherine Beach, with gorgeous sea and land views, among the best in all Bermuda. It is the dominant landmark in the area by air and sea. It has a troubled history. It began life as a leased Holiday Inn. It failed, the leasehold was sold, became a Loews Inn, failed again, then became a Club Med resort until 1989, when it again failed. The building reverted to landlord the Bermuda Government, owner of the land and property. Fort Victoria was leased with the property, and became the site of the hotel's swimming pool and tennis courts as it was lost forever to visitors and those who appreciate unique British military property. Jul
2008
The now-derelict site, instead of being without any human occupation, was, until April 2007 when they were finally ejected - the home of trespassers, more than 33 homeless folk who have took refuge in the formerly vacant staff dormitories of the once bustling hotel, despite the many "no trespassing" signs. They joined forces to form a ‘People’s Alliance’ in a bid to make the derelict building a better place to live. Many of the people are skilled and have jobs but are unable to to afford the Island’s high rents and cost of buying a home. They have been dubbed Bermuda’s ‘working poor’ – part of a growing segment of the population caught in the housing trap. They ranged in age from 14 to 56 and bonded together to pool skills and food under the People’s Alliance banner. They included skilled laborers, carpenters, beauticians and even some Government workers. They ran the Alliance to ensure each resident has access to food and that their most basic needs were met. Some visited grocery stores to see if they would give food that would otherwise be thrown away. Their efforts were successful and they had a relatively good supply of nonperishable food. They had power and furniture, some found there, others scrapped, plus TVs and more, inside the rooms. The property looked like it had been battered by a strong hurricane. All escaped the exorbitantly high rents and costs of housing elsewhere. They were aware that they would be forced to leave if the property is leased, but were happy that they had a roof over their heads and were not forced to live in Bermuda’s public parks and beaches. This is a side of life other Bermudians and tourists do not see, except when publicity results when the Police are called. In late 2007 the discovery of asbestos halted plans to demolish the former Club Med and prompted squatters to move back in after being evicted by the Government.
Despite its stunning setting for a top-class resort, the property has remained vacant for more than 18 years with several investors putting forward ambitious plans, backed by tens of millions of dollars, only to have them collapse.
In December 1993, the United Bermuda Party's Jim Woolridge became the first in a string of Tourism Ministers from both major parties to claim that good news on Club Med was just around the corner. He announced that he had met with a group of businessmen from Massachusetts who had viewed the site and were interested in building a new hotel. But before anything could move forward, the Government had to deal with the fact that Club Med still held the lease to the land on which the hotel stood. In 1995, the French resort company proposed reopening 100 of the hotel's 340 rooms and simultaneously slashed its asking price for the building from $32 million to $13.5 million. Its argument was that it would be easier to sell the business as a going concern. But the Government rejected the proposal, as Works & Engineering Minister Leonard Gibbons pressed ahead in taking Club Med to court to reclaim the property, arguing that the company was in violation of the terms of its lease. When the matter went to Supreme Court in August 1995, Puisne Judge Vincent Meerabux reversed his decision on whether to send the matter to arbitration and legal proceedings began that were to continue, on and off, for more than two years.
In February 1996, Club Med approached Government with a proposal to reopen the hotel by May of the following year. The Government set aside its legal action and compromise agreements were reached on re-licensing requirements relating to fire safety, sewage treatments and room standards. Club Med decided reopening would not be possible until the spring of 1998, but in March 1997 proposed to reopen as a timeshare property.Government responded by re-launching its legal action to take back the lease. The result? Club Med gave up the lease in September 1997. In 1998 the Atlanta-based Camberley Hotel Company was in the frame as the next potential developer. Talks between the company and Government progressed well over the subsequent months and by July the company had come to a labour agreement with the Bermuda Industrial Union and had set early 2000 as a target opening date. A month before the November 1998 General Election, Camberley president Ian Lloyd-Jones said his company's $32-million revamp plan for the hotel would be put on hold until after the poll. The Progressive Labour Party won the election and David Allen replaced David Dodwell as Tourism Minister. Talks continued, but by May 1999 the Camberley deal was close to collapse due to finances, or the lack thereof. By late 2000, Mr. Allen sparked some optimism by announcing that Malaysian development company Aman Capital wanted to redevelop the site. But by December 2001, the plans had effectively collapsed. In September 2002, after a short battle with cancer, Mr. Allen died. Three more bids to redevelop the hotel site were considered by Government, but one of the competing groups got fed up with waiting for a decision by late 2002.
A year later the St. George's Renaissance Consortium, backed by Canada-based Quorum, led by Wanda Dorosz, got the nod for a limited-term exclusivity agreement. Costs were estimated at around $80 million and the group wanted to be in business by 2005. They claimed to have spent more than $2 million on the project that would have brought a Four Seasons hotel to Bermuda. The consortium's $220 million plan, unveiled in November 2003, included demolishing the old building and replacing it with a hotel of at least 90 bedrooms and a cottage complex of 90 condominiums, designed in a European style with public squares and fountains. An underground theatre, seating between 400 and 500 people, would be used for cultural events and the consortium had gathered support from several overseas cultural institutions which would have resulted in world-class theatre coming to the island. By March 2005, the plans remained on track, with a much-increased cost estimate of $210 million and the Four Seasons hotel chain set to manage the resort. However, by December 2005 the Renaissance group, with its $220 million worth of financing in place and primed to press ahead, was dealt a major blow when it appeared Government stopped talking to it. The next move was unveiled by Dr. Brown in January 2006 when he revealed that talks had started with US-based KJA Company and Jack Avedikian. Ten months later this agreement was terminated.
It is hoped that if and when the property is resurrected it will be bull-dozed and rebuilt as a five-star hotel for an as yet unnamed hotel operator who will agree to the property and land being only leased, not bought outright. This has been the main stumbling block to date. A testing 'signature' golf course is also on the cards to give the new hotel, if built, an extra hook for attracting visitors to the East End.
May 9, 2007. Construction work on the five-star St. Regis hotel at the former Club Med site is to begin this year, Premier Ewart Brown pledged at a public meeting. Dr. Brown said he wanted to reassure “pessimists” that ambitious plans to transform the derelict building would not go the same way as a string of similar proposals which have collapsed in the past
