A major blow has been delivered to Wellington City Council's plans to develop Shelly Bay.
The Court of Appeal's sided with community group Enterprise Miramar, quashing a decision by the council to grant resource consent for the development.
The project included construction of 350 new homes, an aged care facility and a boutique hotel.
The court's found the council made an error of law in its interpretation and application of a section of the Housing Accords and Special Housing Act when granting resource consent.
As a result, matters such as the environmental effects of the proposed development weren't given appropriate consideration by Council.