"Their behaviour in the past has been obnoxious - particularly to the law - and that became an overriding concern for all of us," Waitaki Mayor Alex Familton said yesterday.
The University of Canterbury's Engineering Society (Ensoc) put a written proposal to the Waitaki District Council to stage a "student event", including a concert with top bands, in Oamaru in August, incorporating the Undie 500 students' road trip from Christchurch.
Ensoc president Graeme Walker said he needed to discuss the Oamaru rejection with his committee.
Yesterday, Mr Familton, police, the licensing authority, Chamber of Commerce and community emergency services discussed the proposal.
Ensoc was not represented, but the Oamaru Jockey and Oamaru Harness Racing Clubs were, because the Oamaru Racecourse was suggested as a venue. The meeting declined the proposal.
One of the big concerns was a decline in behaviour over the past three years, which resulted in many arrests in the past two years following alcohol-fuelled disorder in Dunedin.
After last year's event, during which several hundred people clashed with police and 60 arrests were made, Dunedin Mayor Peter Chin, along with representatives of the police, Fire Service, and the University of Otago, told Undie 500 organisers they would not be welcome back in Dunedin.
That was a factor in yesterday's decision Oamaru would not be a substitute venue.
Mr Familton said the fact Dunedin had turned down a similar application, and the history of the event, all led to community representatives believing that the only responsible decision would be to decline the request to bring the event to Oamaru.
"Emergency services felt any attendance they had to give to a venture of that size may well jeopardise our own community - they may not be able to cover both."
There could have have been liquor licensing difficulties with the racecourse and the age of the people attending.
"Probably the most important reason was that nobody there [at the meeting] felt confident about the students in view or their previous track record," he said.
These concerns were supported by Waitaki district councillors when contacted individually by Mr Familton.
"While we would love to host proactive events for the benefit of our young people, the track record of this particular event left us no alternative.
In view of the risks identified, I believe this is our only option," Mr Familton said.
The police southern districts operations manager, Inspector Lane Todd, who was at yesterday's meeting, had similar views.
"Over the last three years, this event has escalated into widespread violence and disorder, which resulted in last year's major event.
The proposal put forward did not mitigate any of those risks," he said.
Liquor sale management was also going to be a huge risk.
Some parts of the proposal were "quite good", but the main risks were not managed.
Police would have had to bring in extra resources at a significant cost because Oamaru staff would not have been able to cope and the same would have applied to other emergency services such as fire and ambulance.
The two horse racing clubs which own the racecourse had decided at their own meeting on Tuesday they would not host the event.
The Undie 500 is an annual rally of decorated vehicles valued at less than $500 travelling from Christchurch to Dunedin and back.
The 20th anniversary of the event was scheduled for August 22.