The Queenstown Lakes District Council affirmed a 2001 council resolution to sell a portion of Upton St in Wanaka but following lengthy discussions this week rescinded part of the resolution.
The issue has been ongoing since 1994 when the lower part of Upton St was closed and sold to the adjoining owners at the time - the Smith and Gale families.
A residual 2m wide strip was retained by the council for future access way and pedestrian connection between Upton St and the monument.
The upper part of Upton St was not closed and, although the war memorial is located on it, it remains a legal road.
In a report to the council, Joanne Conroy, of APL Property, said from time to time the owners of 27 and 28 Upton St, the Smiths and now the Marshalls, had approached the council to buy portions of the council land adjoining their properties.
In January 2001, the council agreed to instruct the chief executive to implement the terms of a 1980 deed between the Lakes County Council and a Mr Gilbert, including the closure of the unformed portion of Upton St; sell a portion of the property, comprising about 330sq m; retain the balance of the property to preserve the War Memorial Precinct; authorise the chief executive to determine the dimensions of the portion to be sold, negotiate the terms of the sale, including the price; and to resolve the future of the walkway created in 1992.
"As far as we can establish, none of those tasks were completed," Ms Conroy said.
The Smiths and Marshalls approached the council again last year asking to buy a portion of 17 Upton St, a portion of the legal section of Upton St and the 2m walkway strip.
The Wanaka Community Board considered the matter last September and resolved to recommend the council review the 2001 recommendation.
"The reason for passing this resolution was that the Wanaka Community Board wished to preserve the option of forming a walkway from the bottom of Upton St to the memorial at some stage in the future when funds allowed.
"For this to happen part ...
[of] the council resolution in 2001 would need to be rescinded because part of the 330sq m referred to would be needed to form the walkway."
Ms Conroy said if the council wanted to form a track up to the memorial from the bottom of Upton St the track would not be formed with the sale of the 2m wide walkway.
While the width was adequate to form the walkway, forming it would be expensive, she said.
"Although we understand the Smiths and Marshalls would meet any costs incurred in subdividing and purchasing the 2m walkway, the return to the council for this land would be minimal.
"Some members of the Wanaka Community Board have expressed a desire to retain the ability to build the walkway at some time in the future, even though it would be reasonably difficult."
Councillors discussed the item at length on Tuesday, before Cr Lyal Cocks, of Wanaka, proposed to amend the 2001 council resolution.
The adopted resolution removed a reference to the 2m walkway strip being included in the road closure and made available for sale; and changed the area of land available for sale to 300sq m.
