The Friendly Bay Society has defended its action in the Environment Court challenging the legality of the Waitaki District Council's Forrester Heights subdivision on Cape Wanbrow in Oamaru.
The council estimated last Friday the cost of the court action to ratepayers was $17,500, although the Environment Court on Thursday ordered the society to pay $3000 towards that.
The society withdrew its action during its opening legal submissions after Judge Jeff Smith indicated the Environment Court did not have jurisdiction over the key issues being raised.
Society representative Wayne Stringer said Judge Smith clearly thought there was a case for the council to answer, although in another forum (the High Court).
The fact only $3000 in costs was awarded against the society was also significant, he said.
Mr Stringer said Judge Smith stated in his decision awarding costs that the council was not transparent when it issued a subdivision consent for the 27-section subdivision.
"He also stated it was highly irregular for the council not to appoint independent commissioners [to consider the consent]," Mr Stringer said.
Mr Stringer also said Judge Smith said the fact the subdivision was not publicly notified indicated a lack of accountability by the council.
The council had decided to go ahead with the consent and clear, market and sell the land without having a clear title to it.
The $3 million proceeds from the subdivision were to have gone towards the $9.7 million Opera House redevelopment in Oamaru.
The council was now in the position of having to borrow $3 million, Mr Stringer said.
Waitaki Mayor Alex Familton said he was pleased the society had withdrawn its appeal to the Environment Court.
"The Environment Court has confirmed that, if there is an issue, the High Court is the proper place to test that issue," he said.
However, he encouraged everyone to put aside differences of opinion and recognise the positive aspects of the development.
The project had been debated and passed by the council and the development started.
"The council has pushed ahead with confidence, recognising the potential and outstanding location of Forrester Heights," he said.
