Devlopment plans by the Bermuda Government will see the five buildings left “partially completed at Morgan’s Point transformed into 35 additional units to Bermuda’s housing stock.

This from Premier David Burt, who is also the Minister of Finance who said the Government is “working to finalise the Morgan’s Point Development Company Board”.

In his Budget Statement, delivered in the Lower House on Friday (Feb 16), the Premier said: “Discussions have already been held with local banks to finance the first phase of construction of the five buildings.”

Based on “the view of the Government’s advisors”, he was confident that “this initial phase of the project will not incur any additional expense to the Government”.

“Once completed and rented, the cash flows from this Phase will exceed the cost of repaying the incremental borrowing, which is the approach intended at each following Phase.”

He went on to say that “one of the positive aspects of the Government’s work is the fact that Bermuda will see three major construction projects commence this year”.

“First the Fairmont Southampton project, second the Brookfield building on Front Street, and 3rd the Morgan’s Point development,” said Mr Burt.

“We have all heard the announcements from the developer regarding work starting at the Fairmont Southampton Hotel, and I know that all residents eagerly anticipate the site renovation works its construction phase which is scheduled to last for 15 months.

“Demolition works have also commenced on Front Street for the new Brookfield building, and this job is projected to add 200 jobs over the next 18 months.

“This will deliver a modern building, removing boarded up windows and replacing them with prime retail and office space.

“This investment by Brookfield is a vote of confidence in Bermuda.”

Expanding on “the Government’s vision for Morgan’s Point, he noted that the Government has been “preparing the groundwork” over the past year.

Ultimately, he said this development would “immediately add high-end housing stock to the country as support for the significant demand from our growing international business sector”.

“The addition of rental capacity by way of the completion of partially constructed buildings is the best way to begin to reclaim value at the site, with the lowest execution risk,” said Mr Burt.

“It also supports the work of design and development of a wider spectrum of rental units on site to address the pressing housing needs at all levels.

“Once completed and rented, the cash flows from this Phase will exceed the cost of repaying the incremental borrowing, which is the approach intended at each following Phase,” he added.

“It is vital that we continue to stay the course by adhering to our Economic Development Strategy, which builds on our Economic Recovery Plan that has yielded positive economic growth, a recovery of jobs since the pandemic, unemployment falling to lower than pre-pandemic levels, and record international business growth and jobs in Bermuda.”

On that note, he concluded: “Our economic policies are working, they are delivering balanced economic growth, and that growth is translating to stronger-than-expected tax revenues leading to solid fiscal performance.”