Maria Island's potential for wine and silk production, fruit-growing and tourist developments attracted an Italian entrepreneur, Diego Bernacchi. In 1884 Bernacchi secured a long term lease of the island from the Tasmanian Government and the 'Maria Island Company' was formed. Bernacchi renamed Darlington "San Diego", and the little town soon had in excess of 250 residents of a variety of different nationalities. Bernacchi established a small cement works which made use of the island's limestone deposits. The opening of the Grand Hotel in 1888, complete with dining, billiard and accommodation rooms, saw the promotion of the island as a pleasure resort and sanatorium. Also constructed during this era were the Coffee Palace, a row of workers' cottages known as the 'Twelve Apostles' and six terraced cottages, built using bricks from the demolished convict separate apartment cells. Some of the old convict buildings were re-modelled to house workers, managers and shops. Bernacchi's family resided in the old religious instructor's house for a time. Sadly, the 208-cell apartment block from the second convict era was demolished and the bricks used to build other buildings and roads. Only two photographs exist today of this building. Although Bernacchi was enthusiastic, the Maria Island Company went into liquidation in 1892. Bernacchi promoted the island's cement industry and formed a new company for that purpose. It was short-lived, and in 1896 Bernacchi and his family left for Melbourne, and subsequently London. Afterwards, tourists continued to frequent the island where Rosa Adkins ran a boarding house in the former Coffee Palace.
