A vast section of Crete’s former American military base is moving closer to redevelopment as a large tourism, residential and commercial destination following the release of detailed plans for the long-dormant property.

The proposed development at Gournes, approximately 16 kilometers east of Heraklion, would include two five-star hotel complexes with a combined capacity of 1,614 beds, bungalows, private tourist residences, extensive wellness facilities, shops, restaurants, sports areas and new infrastructure.

The details are contained in the project’s Environmental Impact Assessment, which has entered public consultation as part of the environmental licensing process.

The filing represents an important step, but it does not mean construction has been finally approved or is about to begin. DIMAND currently describes the Gournes project as “in planning.” The company has not publicly identified hotel operators or announced an opening date.

A Former Military Property on Crete’s Northern Coast

The development site covers approximately 345,567 square meters, or about 85 acres, along Crete’s northern coastline.

It forms part of the larger former United States base at Gournes, which operated until the 1990s. Other parts of the former base are now occupied by public and institutional uses, including the Cretaquarium and the Hellenic Centre for Marine Research.

The property offered for private development includes approximately 630 meters of coastline and is situated near the old and new national roads connecting Heraklion with eastern Crete. It is approximately 30 kilometers from the new international airport under construction at Kastelli.

The Greek state originally sold the company controlling the property to REDS S.A., a Greek real estate development company and subsidiary of the Ellaktor Group, after a public tender. In September 2025, a DIMAND subsidiary acquired the company from REDS for approximately €40.1 million, giving DIMAND control of the site and its development rights.

Two Large Five-Star Developments

The western section of the property is planned as a five-star hotel complex with 762 beds.

It would include a central hotel with 100 rooms, 120 furnished bungalow-style units, restaurants, swimming pools, exercise areas, small shops and a wellness center with capacity for 90 visitors.

The buildings in this section would cover approximately 15,350 square meters, with a maximum height of approximately 10.75 meters.

A larger tourism complex is proposed for the eastern part of the site. It would have 852 beds and include a five-star hotel with 110 rooms, 74 bungalows and 54 furnished tourist residences.

Those 54 residences are intended for sale and would be positioned along the eastern section of the waterfront. The eastern development would cover approximately 30,540 square meters and would also include restaurants, recreational areas, a gym, a children’s play area and a wellness facility for 110 visitors.

An additional independent wellness center with capacity for 280 visitors is planned south of the eastern hotel complex. It would be constructed within a landscaped artificial hill, allowing much of the building to be integrated into the surrounding terrain.

Together, the development’s three wellness facilities would have capacity for as many as 480 visitors. The planning documents present the independent facility as a potential year-round attraction rather than an amenity reserved exclusively for hotel guests.

Shops, Restaurants and a Supermarket

The tourism facilities would be accompanied by a commercial zone near the old national road.

Covering approximately 9,672 square meters, the commercial area is expected to include retail shops, restaurants, smaller food and beverage outlets, offices, storage areas, a supermarket and an outdoor children’s play area.

Unlike the hotel complexes, the commercial center is intended to serve not only resort guests but also visitors and residents from the surrounding region.

Plans also include outdoor courts for tennis, basketball, volleyball and mini soccer, together with an internal road network, multiple entrances and approximately 870 parking spaces. A new roundabout and road improvements are also proposed to manage access from the old Heraklion–Agios Nikolaos road.

No Casino in the Current Plan

The possibility of a casino had followed the Gournes property since the original government tender.

Greek planning rules for the site allow a casino to be considered through a separate licensing process. However, DIMAND’s proposed development does not include one.

The casino was examined as an alternative scenario during the environmental study but was rejected. The study concluded that a major gambling facility would generate additional traffic and resource demands, while changing the character of one of the hotels from a family-oriented resort to a casino-centered operation.

The present proposal is therefore based on hotels, residences, wellness, recreation and commercial uses without a casino.

Water and Infrastructure Plans

The environmental filing acknowledges that the wider area has experienced long-standing water shortages and that the coastal groundwater system of northern Heraklion is in poor quantitative and chemical condition.

DIMAND’s plans therefore call for two private desalination facilities to supply the tourism complexes. The commercial center would be the only major component connected to the public water network.

Four wastewater-treatment facilities are also proposed, with treated water intended to be reused for irrigation rather than discharged into the municipal sewage system or the sea.

A photovoltaic system with a planned capacity of 2.595 megawatts would be installed across roofs, pergolas and other structures. According to the environmental study, it could cover approximately 36 percent of the development’s electricity requirements.

The plans call for the demolition of 45 abandoned buildings remaining from the former military base. Construction debris would be processed and reused where possible, while hazardous materials, including asbestos-containing materials, would require specialized disposal.

The study states that approximately 213,000 square meters would be landscaped as green space and that roughly 84 percent of the property would remain free of buildings. Approximately 200 existing olive trees would be retained, replanted or relocated within the development. These figures remain projections contained in the developer’s environmental submission and will be examined during the approval process.

A Three-Year Construction Estimate

The environmental study estimates that construction would require approximately 36 months once work formally begins.

It also projects approximately 100 jobs during construction and 580 direct jobs once the hotels, residences, wellness facilities and commercial spaces are operating. Those numbers are estimates presented in the study rather than completed hiring commitments.

The project has been assigned a gross development value, or GDV, of approximately €351 million. GDV is an estimate of the completed development’s overall value and should not be confused with a confirmed construction budget or a final amount already invested.

Another Major Piece of Crete’s Changing Northern Coast

The Gournes proposal comes as Crete’s northern coast undergoes a broader wave of hotel, residential and transportation development.

Unlike an individual hotel opening, however, Gournes is being planned as an entire mixed-use district combining accommodation, homes, retail, wellness and recreation on one of the largest undeveloped coastal properties near Heraklion.

The project must still complete environmental consultation and secure the remaining approvals and construction permits before building can begin.

The environmental filing has now placed a detailed plan—with hotels, residences, shops, infrastructure and more than 1,600 beds—before the public and the authorities responsible for deciding whether it can proceed.