The Catholic bishop and the Diocese of Dunedin feel "delight and relief" a six-year court battle to build a $3 million to $5 million primary school for up to 112 pupils near Arrowtown appears to have ended with the High Court dismissing an appeal.
However, the resource consent process and challenge by appellants through the courts cost the diocese "well in excess of $500,000" and "certainly created some difficulties and setbacks we're determined to overcome," Catholic Education Office director Tony Hanning said.
The High Court's ratification, in a decision released on Friday, of the Environment Court's approval cleared the way for the school's proposed two-stage construction, he said.
"A major concern was if it had taken from 2006 to 2012 to reach a decision in this regard, if it had been unfavourable, then where to from here for development?" Mr Hanning said.
"The need for schooling development in the Wakatipu is strong for us, as it is for all other educational interests.
"This will allow us to now plan for implementation. Planning has been done. That was a very thorough and detailed part of the consent process."
Justice Christine French said in her decision while the appellants persuaded her the Environment Court decision contained two of the five submitted errors of law, she was not persuaded the errors were material.
She dismissed the appeal lodged by Ayrburn Farm Estates Ltd, plus consulting engineer James Hadley and Rebecca Lucas, as trustees of the Millhouse Trust, plus environmental scientist Glenn Davis and former council planner Gemma Davis, council planner Scott Figenshow and Lakes District Hospital manager Norman Gray, barrister Jane Taylor and former Queenstown Airport Corporation chairman Mark Taylor, also a director of Ayrburn Farm Estates, with Dianne McArthur, Ken Edwards, Murray McCleery and Eunice Parkin.
Mr Hadley said residents were considering whether to appeal the decision. The appellants were "frustrated again" that their concerns the Environment Court "did not apply the right tests" to the Resource Management Act remained unresolved, he said.
"If the Environment Court decision is left to stand, it may open the door to extensive development in the rural living zones that was never contemplated.
"A new school will be the thin end of the wedge. The residents consider that the decision, in essence, determines that the existing district plan provisions protecting rural amenity and character, as a concept widely understood by residents of the Queenstown Lakes district, have little or no weight and cannot be relied upon by ratepayers in these zones.
"Anything is now possible, it seems."
Mr Hanning said it was too soon to say when construction could start and when the school would open.
"We recognise the need and we would look to plan without unnecessary delays, but finance will be a major one."
The second campus would alleviate enrolment growth pressure and the travel needs of pupils attending St Joseph's School, which taught 143 primary school pupils as of this week.
Up to three pupils enrolled for the new term, in addition to the arrival of an extra five pupils in term one.
Principal Trisch Inder said seven more pupils were expected to enrol later this year. The enrolment cap was 175 pupils.