Land exchange negotiations between the Department of Conservation (Doc) and the council are holding up the sale of a bankrupt Glenorchy parachuting company, which has attracted seven potential buyers.
Doc agreed to transfer around 60ha of land containing the Glenorchy Airstrip and the Glenorchy Peninsula Reserve to the Queenstown Lakes District Council (QLDC) in 2007.
Based on the Glenorchy airstrip, Vertical Descents wants to apply for a new concession to help sell the business, which is in receivership.
The company's concession expires next April.
QLDC parks manager Gordon Bailey said in a tabled report Doc and the council had seven approaches from aerial operators wishing to begin operations, but "no concessions on the reserve will be granted or amended" until the deal is completed.
As part of the land exchange, the council decided to stop a paper road and create a safer access road into Glenorchy airstrip.
This week, the QLDC Community Services Committee meeting granted walking access across the stopped road, and said further negotiations would be made with the land lessee early next year, to negotiate horse access.
Mr Bailey hoped the land exchange would be resolved by February, leaving Vertical Descent enough time to apply for a new concession.
