A strategy meeting of about 20 residents held on Saturday looked at how the town might overturn a Queenstown Lakes District Council decision in favour of the proposed 400-section SHA on the southern outskirts of the town.
Lake Hawea Community Association deputy chairwoman Jen Rumore told the Otago Daily Times yesterday one resident had already cancelled a business arrangement with a real estate company that supported the SHA.
"On one hand that is so good,'' Ms Rumore said, "and on another hand I don't like how that tears at the fabric of our community.
"And that's really what this SHA is doing.''
Stew Burt, who analysed submissions on the SHA, said yesterday 90% of the 64 submissions in favour were from real estate agents and tradespeople with a "vested interest''.
Ms Rumore said other action being considered was lobbying housing minister Phil Twyford - who has the final say on whether the SHA goes ahead - employing a lawyer to challenge legal aspects of the decision and complaining to the Ombudsman.
Ms Rumore said the council had gone against its own policy in approving the SHA, and a letter to the council from resident John Langley on Sunday claimed council staff misled the council.
In the letter, Mr Langley called for the council to rescind its decision because staff had not provided it with all the relevant information.
Mr Langley pointed out council policy stated: "The council will not accept proposals or expressions of interest from landowners or developers ...''
Yet, council planners told the council in their executive summary the SHA proposed by Mr Hocking was "considered to be consistent'' with the policy.
"This statement is false,'' Mr Langley wrote. "The lead policy specifically excludes developer-led proposals.''
He also took issue with other advice given to the council by staff.
A council spokesman said yesterday the council was unable to respond to an ODT inquiry on the matter but the query was "in hand''.
Ms Rumore said while residents preferred the development not to go ahead, they also hoped a Lake Hawea representative could be included in discussions between the council and the developer over the deed of agreement required before the SHA went to the minister for final approval.
