A plan to redevelop Dunedin's Loan and Mercantile building in Thomas Burns St has hit a "road block'', building owner Russell Lund says.
Mr Lund said extra conditions being suggested by a group of harbourside businesses would make the project unfeasible and unless they changed their minds the issue would need to be dealt with by the Environment Court.
His plans to redevelop the 142-year-old heritage warehouse building in Thomas Burns St, beginning with 24 apartments on the top floor, were put on hold after a group of harbourside businesses lodged an appeal with the Environment Court.
The appeal was lodged after the Dunedin City Council hearings committee granted consent late last year.
Before the case going to court, the group - Kaan's Catering Supplies, Farra Engineering and Esco Dunedin - which was later joined by the Otago Chamber of Commerce, has been involved in mediation.
Mr Lund had been hopeful mediation would provide a solution both sides could be happy with, but those efforts had hit a "road block''.
This was because an extra condition being proposed by the other parties would create too much uncertainty for the project to go ahead.
"They are saying if you ever apply for any future consents for the remainder of the building ...that they can then review any and all of the conditions they are imposing on the agreed consent.''
In theory, this meant they could come back in five years time and require him to put in extra sound-proofing or car parks.
This would have a devastating effect when it came to getting people to fund or buy part of the development.
"A bank or lawyer is going to look at those conditions and say this development has no certainty.''
He remained hopeful the case would not have to go to the Environment Court and the objectors and the Dunedin City Council, which was also part of mediation, would change their minds.
"The ball is in their court.''
Farra Engineering chief executive John Whitaker declined to comment while negotiations were still under way.
Kaan's Catering Supplies managing director Lindsay Kaan also declined to comment.
