The company behind a Cromwell development meant to have accommodation for 200 people in place by the end of the month has requested an extension for the project.
Work has not started on the project, which was meant to be finished in order to meet land sale requirements.
The changed timeframe was "not a problem" and the accommodation complex would still proceed, AC/JV Holdings Ltd director Alistair Hey said.
The company, owned by Mr Hey and Clark Proctor, of Queenstown, was sold a 7ha area of land along Cemetery Rd and backing on to McNulty Rd by the Central Otago District Council (CODC) about two years ago. The sale was announced in March 2016.
At the time some in the Cromwell community questioned such a large piece of council land being sold to a developer.
Now others are unhappy about the development's lack of progress and the probable increase in value of the land since it was sold.
CODC property and facilities manager Mike Kerr said last year the land sale was conditional upon "reasonable progress" having been made by 18 months after the sale went unconditional.
Mr Kerr said the contract became unconditional on July 31, 2016, and council had then granted an extension because of delays in negotiations with a third party relating to a road adjoining the property.
That meant the deadline for "reasonable progress" became March 30 this year.
"Reasonable progress" meant the company was required to have built accommodation for a minimum of 200 people and have a code of compliance for that, plus have the floor slab in place for another 200 people, by March 30, Mr Kerr said.
Mr Hey said last October the complex had been redesigned from a dormitory-style complex to six 40-room accommodation buildings, and contractors would be "breaking ground by Christmas [2017]".
The new development would provide accommodation for up to 960 people, and would now not be just for seasonal workers but all workers, to meet market demand.
No work on the project has yet started, but a sign on the Cemetery Rd boundary of the property shows various areas either sold or for sale, for industrial, commercial, retail and apartments.
The Otago Daily Times asked CODC representatives for more detail about the development and if the council would now consider pulling out of the deal and halting the land sale.
Council chief executive Sanchia Jacobs confirmed the developers would not have met "reasonable progress requirements" by the end of this month "for a number of reasons".
"As is the case with all contracts, they can be varied by agreement. An extension has been requested by the developer and is being considered by the Cromwell Community Board, who were delegated authority to amend terms and conditions of the sale by Central Otago District Council. The details of those considerations are commercially sensitive, and are therefore confidential."
Mr Hey said the request for an extension did not signal a delay, and the changed timeframe was because the redesign of the complex had taken longer than expected. He said he hoped for a decision on the building consent application lodged by his company within 20 working days.
