KEY POINTS:
Felling mature protected willow trees has halted a $100 million subdivision development near Queenstown.
The Environment Court has ruled the developer of Threepwood, an exclusive 41-section subdivision on the western shore of Lake Hayes, "breached the spirit, intent and desired effects" of the Queenstown Lakes District Plan by cutting down the protected trees.
In a strongly worded ruling this week, Judge Jon Jackson and two commissioners declared the original resource for Threepwood invalid.
Investors who had paid between $1.5 million and $4.5 million for lots in the subdivision may be able to cancel their contracts and seek refunds, the court said.
It ruled that the development could go ahead only when the trees grew back, which could take between 10 and 20 years.
Finishing touches to the subdivision, including roading and lighting were being done this week when the court's decision was released.
Queenstown Lakes District Council chief executive Duncan Field confirmed the situation today, saying the court's decision meant a large part of the Threepwood development no longer had a resource consent.
Developer Meadow 3 Ltd would have to reapply.
Mr Field told NZPA today the council had been surprised at the harshness of the decision "because literally the penalty is that the developer can't obtain titles and can't press on".
"Probably the biggest thing from the council's point of view is that it's a really major reminder to developers that they have to read the fine print in their resource consents and make sure they comply with it," Mr Field said.
The "worst-case scenario" was that if they didn't, their developments could be stalled indefinitely.
Mr Field said he doubted Meadow 3 Ltd would appeal the court's decision because the appeal process could take longer than if the company reapplied for a consent.
Meadow 3 Ltd director Jim Boult said today the company viewed the Environment Court judgment as an interim one.
"The judge says he has issued his judgement only in draft form, inviting comment from the parties involved," Mr Boult told NZPA.
"Until the final wording is in the judgment we consider it inappropriate for anyone to make any comment, let alone ourselves.
"We've got to see what the final wording is before we make any decision (on an appeal or reapplication for a consent)," Mr Boult said.
- NZPA