"Where you hear noise, there's friction, and where there's friction there's tyre wear - a whole lot of things.
Rotorua Lakes Council deputy chief executive Stavros Michael said alternative surfaces were too expensive and it was unfair to expect ratepayers to fund the difference.
"We have looked into resurfacing using asphaltic concrete, which is the black stuff we put on the road, but those costs are significantly different to a chip seal," he said.
"Asphalt is about five times more expensive than chip seal, but also asphalt is not as structurally effective as chip seal.
"When you do have roads that move, they're flexible.
"It's better to have a chip seal, because otherwise asphalt will crack and will defeat the whole purpose of having a new surface on the road.
"One would argue that the existing surface is chip seal.
"They've been using it for the last 14 years and it seems to have been fine.
"They did ask us, instead of chip sealing could we put asphalt, but asphalt cost about $1m more to do that.
"Of course, that $1m has to be paid by someone."
Seccombe said reports showed chip seal was also bad for regular road users and, because of low traffic volumes, he understood it would take 15 years "before that metal would bed in".
Goudies Rd was last resurfaced 14 years ago and the council said resealing was essential.
Seccombe said, in his view, the council was not recognising the road's heritage and was "treating it like any normal road".
"They're going to destroy a road that was put down for 100 years.
"What I would like is for the council to come to us, or we go to them, whatever, and see can we meet in the middle.
"They're not even offering to come to the party to discuss it."
Michael said the council was happy to work with Landspeed New Zealand and had been for the past three years.
"We cannot hold the surface indefinitely.
"We plan to reseal it next year. We'll wait until they have their next race, and then we'll do the resealing after.
"We think that's a fair and balanced approach."
Landspeed New Zealand said it was seeking legal advice.