The Olive Leaf Centre Trust appealed a decision by independent planning commissioners in 2020 turning down its proposal for a multipurpose parish and community centre on land beside the St Patrick’s Catholic Church in Hertford St.
After a week-long hearing in May, Judge Prudence Steven and commissioner Kathryn Edmonds released the decision on Monday.
The proposal was contrary to the proposed district plan’s historic heritage provisions and the Arrowtown Residential Historic Management Zone, as well as being "overly complicated", the decision said.
Its design lacked "recognisable built form elements that draw on the historic character of the site and its context".
The building, designed by Queenstown architect Fred van Brandenburg, has divided opinion since its unveiling about seven years ago.
After the trust’s application was publicly notified in 2018, it attracted 368 submissions, with 218 in support and 150 opposed.
In 2020, independent planning commissioners said the design was "remarkable", but its scale, form and layout were inappropriate for the site and streetscape.
Mr van Brandenburg said the proposal’s supporters would need time to consider a legal analysis of the decision and look at their options, which included appealing to the High Court or submitting a revised consent application.
However, it appeared the building’s "bulk" was the central point of concern, which raised the question of whether any building large enough to serve as a parish and community centre could get approved, he said.
"The church needs a building here, and no-one opposes that.
"When you look at this decision, it seems to be ‘you can’t do anything’."
Olive Leaf Centre Trust chairman Colin Bellett said the decision was "deeply disappointing" for the proposal’s supporters, which included the parish council and the Catholic church’s diocese, clergy and bishop, as well as a large section of the community.
They shared a vision of a building that "reached out" into the community, especially to young people, to ensure the church remained sustainable.
Among the parties opposing the appeal were the NoLeaf Incorporated Society and the Arrowtown Village Association.
NoLeaf chairwoman Susan Rowley said she felt a mixture of relief and delight about the decision after a "very long, drawn-out process".
The decision upheld the Arrowtown design guidelines and the Arrowtown Residential Historic Management Zone, she said.
"Having two decisions going against the proposal will mean, hopefully, the church will see this has to be the end of it."
Ms Rowley, also a St Patrick’s parishioner, said the issue was not about whether the church needed a community centre, but the suitability of the only design that had been proposed.
