A Gold Coast-styled development which has been planned in some form for more than 20 years has been turned down by the Environment Court.
The proposed maritime village of 267 houses in the picturesque Clevedon valley, south of Auckland, would have spoiled the site's natural character and had adverse affects on Maori, said the ruling.
The Manukau City Council had sought a change to the District Plan which would have enabled the $100 million development to go ahead beside the Wairoa River.
But it was sternly opposed by community group Clevedon Cares, the Auckland Regional Council, and local iwi Ngai Tai Umupuia.
Clevedon Cares were delighted with the decision. It had argued that the development was a village only in name, and would swamp the existing 170-home community.
The developers' lawyer Richard Brabant said the decision was disheartening given that consent had been granted to similar, larger coastal villages at Coromandel and Whangarei.
The plan included man-made canals similar to those built in Whitianga, Matarangi and Pauanui, which would have allowed homeowners to moor their boats virtually at their back door.
Judge Gordon Whiting ruled that it was clearly an urban development which was not in tune with the area's strategic planning.
Mr Brabant contested this.
"It was designed as a coastal village which would fit into its environment. Extensive evidence was given to show it was not an urban or rural development," he said.
Mr Brabant indicated that the long-running legal battle was not over yet.
The developers have filed an appeal to the Environment Court and were considering a High Court appeal.
Ngai Tai spokesman Lawrence Beamish said the iwi was prepared to continue fighting for the site.
"My great-aunt fought against a plan for this part of the river in the 1980s.
"It's a battle that we do have an appetite for."
Clevedon 'village' plan rejected
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