The Environment Court will get to decide whether the dream of a $500 million resort and lifestyle development at McArthur Ridge near Alexandra is over.
Last month the Central Otago District Council decided to reverse a district plan change that paved the way for the venture on 645ha of land, 6km north of Alexandra, six years ago.
During the hearing in June, the McArthur Ridge Investment Group Ltd (MRIGL) said a scaled-down version of the project was still possible, so the development ''remained alive''.
The council decided the provisions of the McArthur Ridge Resource Area were a barrier to the area being developed for conventional rural and rural residential purposes.
It decided to return the area to its original rural resource zoning.
That decision has been challenged by MRIGL to the Environment Court.
The application to remove the zoning came from the Canterbury Mortgage Trust.
The trust is mortgagee for two companies, Central Otago Pinot Noir Estates Ltd and Thyme Field Ltd, which own about 77% of the land within the area.
Melview, which sought the plan change for the development in 2008, owns the remaining 23% of the area.
MRIGL evolved from Melview.
In the notice of appeal to the court, MRIGL consultant Warwick Goldsmith said the entire decision by the council was being appealed.
There was ''little or no evidential basis'' upon which the council could conclude that the project was infeasible, he said.
The council's conclusion the provisions of the McArthur Ridge-zoned area could only stand on an ''all or nothing'' basis was unsound, he said.
The appellant sought the rejection of the plan change and for the provisions of the McArthur Ridge-zoned area to be retained in full, or the provisions to be retained but amended.
During the hearing, Peter Dymock told the hearings panel on behalf of the Canterbury Mortgage Trust that the McArthur Ridge project was ''dead in the water''.
''The dream is over and it's time to move on,'' he said.
The McArthur Ridge project was billed as one of Central Otago's biggest developments.
It was to include visitor accommodation, an 18-hole golf course, hotel lodge, a 200ha pinot noir vineyard, luxury spa complex and up to 1376 residential units.
At the June hearing, Mr Goldsmith denied the project was ''dead in the water''.
He said a ''slimmed-down'' version was possible, comprising a hotel, nine-hole golf course and golf clubroom.
The council should keep the door open for the original development or some form of it, Mr Goldsmith said.
No date has yet been set for the court hearing.
