At this month's meeting of the board Walsh reported that both Mitre 10 and Ngāti Kahungunu were happy with the placement of the sign and Tararua mayor Tracey Collis and Tararua District Council chief executive Blair King had given the go ahead to proceed with it.
"It was looking as though we were set to go ahead with it, but then the NZ Transport Agency said no, you can't put the sign there.
"They said there was a building on the site, not a carpark. They must have been looking at an old map as there is no building on the site, there are 20 or so carparks."
NZTA then said the electronic sign could not be attached to another sign as it would make it oversize.
Walsh said the next stumbling block was put in their way when Scanpower said laying a power cable to the sign would be expensive.
"I don't know where to go now. It's been hard work trying to put up a sign.
"I can't get over the blocks that have been put in our way."
At the board meeting Collis told the board to go ahead and get quote from Scanpower for the work.
At last week's community board coffee meeting Walsh said the sign measured 1600mm by 600mm.
It would be operated by Dannevirke Information Centre staff and would promote coming events, advertise local body elections, water shortages, fire bans.
Board member Kim Spooner-Taylor suggested that some rules and regulations were needed as to what could and could not be put up on the sign.
The proximity of the sign to a pedestrian crossing on High St was an issue raised as it was felt it could distract drivers, but board chairman Ross Macdonald said the sign would attract attention no matter where it was placed.
Regarding NZTA objections, board member Terry Hynes suggested inviting a representative to visit the proposed site.
In the mean time Walsh said he was at a loss to know what to do and would be keen for some feedback on the issue.