Declined Pak'n Save supermarket plans for Queenstown, revealed by the Otago Daily Times, will see Foodstuffs South Island and a major Queenstown developer appealing the case to the Environment Court.
The multimillion-dollar Frankton Flats supermarket and fuel station was expected to create 250 jobs, but was refused consent by commissioners David Whitney and Lyal Cocks late last month.
Part of the proposed $100 million Shotover Park retail development, the 6603sq m facility would be close to the planned $125 million Five Mile retail and entertainment complex, including a 4200sq m Countdown supermarket.
Porter Group Ltd director Alastair Porter said the decision was "extremely disappointing for the Queenstown community" in the face of constant requests for a Pak'n Save.
"The Pak'n Save resource consent is about affordable groceries for members of our community, a $30 million investment at a time when business development is seen as relatively stagnant" the Remarkables and Shotover Park developer said.
Mr Porter believed the supermarket had been turned down because too much weight had been given to a "redundant" zoning report and not enough on considerations on improving affordability.
"The only objection was from the developer of the former 5 Mile site, whom we absolutely regard as being motivated by self interest given he is involved with the planning for a Countdown supermarket on a nearby site adjacent to Grant Rd."
He said Porter Group Ltd would be joining Foodstuffs in appealing the decision in the Environment Court, but considered the best solution would be to come to an agreed settlement.
Foodstuffs South Island general manager property and retail development Roger Davidson did not wish to comment on specifics of the decision, but confirmed it would be appealed.
Like Mr Porter, he said he was disappointed "more for the people of Queenstown", who would have to wait longer for the discount supermarket.
A spokesperson for sole appellant, Queenstown Central Ltd, said it was comfortable with the decision on the proposal.
Simon Holloway, also spokesman for the Five Mile development, said allegations that Queenstown Central Ltd had acted for supermarket operator Progressive Enterprises had been addressed in the September hearing"The commissioner also took that into account in his decision, and that is obviously covered off."
H&J Smith, parent company of Queenstown's Remarkables Park Mitre 10, which is proposing a Mitre 10 Mega facility next to the Pak'n Save complex, said its plans were still going ahead.
Managing director Acton Smith said the company planned to progress matters on its own land, and would file for resource consent within the next ten days .
"I have hope that having Pak'n Save and Mitre 10 Mega beside each other will be very beneficial for the people of the Wakatipu Basin . . . employing about 70 to 80 people."
The commissioners found the proposal failed to "promote the sustainable management of natural and physical resources" and would have "significant adverse effects" on the rural general zone. Mr Whitney and Mr Cocks said approving the proposal without a finalised structure plan, or approved outline development plan would establish "an undesirable precedent".
