Naval Air Station Bermuda Annex

The closure was part of a major post-Cold War drawdown of US military forces worldwide. The strategic importance of anti-submarine warfare bases in the Atlantic had significantly diminished following the collapse of the Soviet Union. The US Government's Base Realignment and Closure (BRAC) Commission recommended the closure of all US naval facilities in Bermuda, including the main air station at St. David's Island and this Annex at Morgan's Point, to reduce defense spending.

Following its return to the Government of Bermuda in 1995, the site has remained derelict for many years and required extensive environmental remediation to clean up contamination from its military use. In the 2010s, a major development project was launched to transform the 245-acre peninsula into a luxury resort, marina, and residential complex named 'Caroline Bay'. However, the project encountered severe financial problems and construction was halted in 2018. As of the early 2020s, the site is characterized by partially constructed and abandoned hotel buildings and infrastructure. It is currently tied up in legal and financial disputes and is not accessible to the public.

The Naval Air Station Bermuda Annex, located at Morgan's Point, was a critical seaplane base during World War II and the Cold War. Established by the US Navy in the early 1940s under the Destroyers for Bases Agreement with the UK, it was commissioned as a Naval Operating Base. Its primary mission was to support anti-submarine warfare (ASW) patrols in the Atlantic Ocean. The base operated large patrol flying boats, such as the PBY Catalina and later the Martin P5M Marlin, which were vital in protecting Allied convoys from German U-boats during the Battle of the Atlantic. During the Cold War, it continued its ASW role against the Soviet submarine threat. As land-based maritime patrol aircraft like the P-3 Orion became dominant, operations shifted to the main airfield at NAS Bermuda (formerly Kindley Air Force Base), and the Annex transitioned into a support facility, housing a naval weapons depot, fuel storage, and personnel housing before its eventual closure.

There are no known plans or prospects for reopening the site as an airport or aviation facility. Bermuda's aviation needs are fully met by the L.F. Wade International Airport (TXKF). The historical infrastructure for a seaplane base has been removed or has deteriorated beyond use. All future plans for the Morgan's Point site are focused on land-based commercial, tourism, or residential redevelopment, pending the resolution of the issues surrounding the failed Caroline Bay project.