Speaking on the third day of the Shotover Country plan change hearing, NZTA counsel Luke Hinchey said NZTA's concerns about Plan Change 41 (Shotover Country) could not be adequately satisfied regardless of any modifications to the proposal.
"In essence, what PC41 asks is that an ad hoc development be approved which is contrary to the growth management policy for the District and which will have significant adverse affects on the environment", Mr Hinchey said.
"... there are no positive effects arising from the development which come close to weighing in its favour when set against that context."
NZTA's grounds for opposing the $300 million-plus, 750-house development included concerns over the impacts increased vehicle movements would have on the safety and efficiency of State Highway 6, including a proposed Shotover Country-funded roundabout.
Principal planner of NZTA Dunedin, Ian McCabe, also expressed concern that PC41 "would not represent an efficient use and development of natural and physical resources", and development could be postponed in favour of other Queenstown sites.
Commissioners earlier heard from Traffic Design Group engineer Andy Carr.
Giving evidence on behalf of Shotover Country, he concluded there were "no transportation reasons" why it should not be recommended for approval.
Neighbouring landowner Sheena Haywood, the closest neighbour to the proposed development, said she and her husband had never been consulted and were "gobsmacked" when they first heard about the plan change in February 2010 .
She said months later she heard of a public meeting, which was "in all fairness, a sausage sizzle down on site" and said the dominant number of people who had attended were plumbers and builders - "people with financial interests".
It was there she picked up a submission form and she suggested this was probably where the bulk of submissions in favour of PC41 came from.
The couple, who bought the rural lifestyle section in 2005 and have since moved the historical Laurel Bank House to the property for restoration, were firmly in favour of the Shotover Country Option B lifestyle block development.
She was concerned over who would fund the development, and asked if it was guaranteed not to end up as "another eyesore like Hendo's Hole".
Mrs Haywood said she had heard passengers on in-bound flights to Queenstown state that Lake Hayes Estate development "does not fit in with this beautiful place", and feared the same for Shotover Country.
"To say it is not seen is incredible. Every single flight in and out of Queenstown will see Shotover Country. Every car coming into Queenstown will see the lights of a mass town ..."
She said Lake Hayes Estate had fulfilled a need for housing, and gave her full support to the QLDC planners report on why the PC41 change should not happen.
Neighbour Keri Lemaire-Sicre, a representative for Arith Holdings, RCC Group and Jack's Point Residents and Owners Association, and representatives from the Otago Regional Council also spoke in opposition to PC41.
Neighbours Karl Wood, Jean and Bob Britton, and on behalf of the Lake Hayes Estate Community Association, Kevin Burdon, supported the proposal, and the Queenstown Airport Corporation submitted in favour, subject to conditions.
The hearing concludes tomorrow.