CORPORATION UPDATES PUBLIC ON CITY WATERFRONT MISINFORMATION

Posted by on Sep 10, 2013 in Local News & Alerts | 0 comments

The Corporation of Hamilton today announces its action timeline in relation to the City waterfront project in order to clear up any misinformation that is in the public domain.

In April 2011, the Corporation of Hamilton was no longer able to collect wharfage from the docks and because cash flow was becoming an issue, it needed to develop a new revenue stream. When we took office in May 2012, it was at this time that the City Council made the City waterfront project a priority.

In September 2012, the Corporation issued a Request for Proposal seeking a development partner for the City waterfront. The responses to the RFP were due on October 19, 2012. The Corporation short-listed three companies; however, Allied Development Partners submitted the most comprehensive proposal that included a full development team of companies and professional services, including a concept rendering and budget estimate.

On October 31, 2012, the Corporation signed an Exclusive Developer agreement with Allied Development Partners Limited. They were given five months to:

  • Add an urban design professional and landscape architect to the development team
  • Identify project funding and produce a letter of credit
  • Produce a project schedule and project execution timeline
  • Prepare a specific proposal for improvements to North Hamilton
  • Articulate a clear process for public participation and community stakeholders
  • Give a commitment to work with the Corporation and the community to prepare a development plan
  • Prepare a comprehensive business plan with schedule, financing detail, project proforma, environmental permitting and approvals including construction phasing.

If Allied Development Partners did not meet the conditions by March 31, 2013, they would have been disqualified as the development partner for the City waterfront project.

Following this agreement, the Corporation formed a Development Committee of members of the Corporation and the developer to progress the City waterfront development.

On December 13, 2012, the Corporation of Hamilton signed a lease with Allied Development Partners as the City waterfront developers. The document gives the developers a 262-year lease on 26-acres of City waterfront between Barr’s Bay and the Department of Marine and Ports on Front Street. The long lease is in keeping with the leases given to 9 Beaches and Club Med and was necessary in order to attract institutional investors and secure the capital necessary to build a $1.7 billion infrastructure. In return, the Corporation will receive a share of the revenue derived from the developments and is guaranteed at least as much income as they are currently receiving from the properties until such time as the project begins to generate revenue.

Part of the proposal from Allied Development Partners, which has been included in the lease, includes an upgrade of North East Hamilton with pedestrian areas, open markets and entertainment.

On January 28, 2013, the Corporation of Hamilton announced the selected developer for the City waterfront project. Since that time, the Corporation of Hamilton has been working with the developer to progress the project.

The Rt. Wor. Graeme Outerbridge, JP, Mayor of Hamilton, says: “The development of the City waterfront is of the utmost importance for the future revitalization of Hamilton and a revenue stream for the Corporation of Hamilton. After nearly 50 years of discussion, I am delighted that this project is moving forward with a development partner. It is the most significant development project that Bermuda has ever undertaken. We will continue to consult with the public—as previous administrations have done—to ensure that this project is one that every Bermudian and every resident can be proud of.

“We are excited about the selection of Allied Development Partners, a Bermudian company, as our development partner. We are also excited about their concepts; however, we wish to remind the public that they are only concepts. Plans will be drawn up once we have had the opportunity to meet with all stakeholders over the coming months.”

The Corporation is continuing to work with Government to provide the necessary documents for its due diligence review and the developers are currently working on the first drawdown of funds.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>