The Queenstown Community Strategic Asset Group, of which Mr Matthews is a member, made a presentation to the Queenstown Lakes District Council recently at a workshop designed to bring councillors up to date with the controversial deal.
An "information pack" containing a brief to the councillors from the QCSAG group has been obtained by the Otago Daily Times and includes a speech made by Mr Matthews to the meeting.
In it, he says the group took "no pleasure" in taking the matter to the High Court.
"We had 100% of an airport we locals built with a blue-sky future that is now shrouded by a dark cloud.
"We're mystified as to why any part would ever be sold, let alone in secret and to Auckland Airport.
"Council finds itself in a forced marriage with Auckland Airport. We are in court. Our town has become a battleground.
"How it [the deal] was done is a sad story to be told and tested in court.
"We take no pleasure in that or the waste of effort and cost we should be applying to building our businesses," Mr Matthews said.
He was referring to the decision announced in July that the Queenstown Airport Corporation had created and sold 24.99% new shareholding to Auckland International Airport Ltd for $27.7 million.
The strategic asset group and Air New Zealand made independent, but related, claims in the High Court at Invercargill in August, seeking a judicial review and an injunction to stop any further shares being issued.
That will be heard in Christchurch in May next year.
Mr Matthews was also critical of the council, a defendant in the case, using ratepayer money to cover the court costs and urged the council to either cease being a defendant or "at least move to being neutral".
"It's hard not to observe that the legal spend alone by the various parties on this sorry story so far would have gone a long way to paying for the latest airport expansion."
Last month, the ODT reported the council had spent more than $120,000 in litigation costs to date over the airport, with Simpson Grierson, of Wellington, acting on its behalf in the matter.
Mr Matthews said the QCSAG had the "resolve and resources" to see the matter through and were "friends of council, not the enemy".
He suggested council assert itself as shareholder and get "the Airport Corporation Board to take control" and "persuade Auckland Airport to unwind the deal to avoid court-case risk and cost".
