Thurlby Domain, in Speargrass Flat Rd, near Arrowtown, was originally developed in the 1870s by prominent business and political leader Bendix Hallenstein.
It has been owned for the past 31 years by Vicki and Revell Buckham, who stabilised the ruins of Mr Hallenstein’s original mansion and restored other historic buildings on the site.
They had allowed many community groups and individuals to use the property, and had charged a fee for private events, such as weddings, the proceeds of which had gone towards maintaining and restoring the grounds and buildings.
However, when they found they needed resource consent for more than 14 temporary events a year, they applied to the Queenstown Lakes District Council for up to 100, with a maximum of 150 guests at each.
The application was publicly notified last December and attracted 31 submissions — 14 in support, 15 opposed and two seeking changes.
Opposing submitters included nearby residents, tech billionaire-philanthropist Rod Drury, developers Chris and Michaela Meehan, arts patrons Abby O’Neil and Carroll Joynes and accountant Craig Benington and his wife Nanette.
Many criticised past events for attracting noise, litter, traffic congestion and drunkenness, and feared their peace and quiet would be more compromised if more events were allowed.
In their decision, commissioners Dr Lee Beattie and Wendy Baker said the temporary use of the site would have substantially regular visual effects when viewed from the public road.
"The undertaking of events on 100 days a year, Portaloos for up to 300 days (allowing for one day either side of an event) and the erection of marquees on up to 36 days (similarly allowing for a day either side) a year and the presence of parked cars in immediate proximity to the heritage buildings on site will result in a reversible change to the character of the site."
While conditions could largely mitigate effects, including traffic, on-site car parking and noise, the intensity of the proposal was greater than could be absorbed without significantly affecting the area’s character, even on the limited basis proposed.
It was accepted Portaloos and marquees were not completely unexpected in a rural location on occasion. However, the proposal went well beyond that expectation, the commissioners said.
"The frequency with which these structures will be present will change the character of the immediate area and adversely affect the visual amenity of those using the public road," the commissioners said.
"In this case, structures, coupled with the relatively large number of people and vehicles on a regular basis, will be inconsistent with the landscape character and established visual amenity.
"Given the proposal seeks consent in perpetuity for events on this site, we consider that the proposal is contrary to this key relevant objective and policy."
They found the cumulative effects of the events, including the increase in activity, traffic and noise, would be immediately discernible, resulting in a "permanent, inevitable and substantial" change to the character and amenity of the location; the effects on the environment were more than minor; and the proposal was contrary to relevant objectives and policies in the proposed district plan.
"We do find that the proposal will have positive benefits to the applicant and the district, generally, by enabling weddings and events as proposed to occur.
"However, we find that the positive benefits would not outweigh the adverse amenity and heritage effects."
The Buckhams could not be reached for comment yesterday.