Republic Hospitality Group chief executive Blair Impey said it hoped council would use "common sense, defer and review" the proposed increased outdoor dining fee charges — which come into effect on December 1 — but they were refusing to budge.
In a statement, a council spokesman said the current outdoor dining policy stated it would be reviewed every three years.
"Council has no plans to review it in the meantime."
While council initially advised businesses of increases to use public spaces for outdoor dining in 2019, that was put on ice due to Covid.
Consultation was opened earlier this year — but associated fees were not shared until it was finalised.
Dining charges range from $600/sq m in The Mall to $250/sq m in other parts of the town centre.
They are also charging a $450 licence-to-occupy application fee for each establishment with an existing licence.
Hospitality New Zealand head of membership Darelle Jenkins said the membership organisation’s position remained unchanged — "the council’s consultation process wasn’t transparent".
Mr Impey said the council "talked about things like what umbrellas would look like, but never mentioned anything about the fees".
He said on that basis the legal challenge to the High Court would be made.
"Literally we found out [yesterday] that we should [take action]," he said.
"I’ve already got legal advice as to how this process goes, so we will be going to the lawyers."
One of Republic’s venues, Soda, has been slapped with a $51,000 bill — up from the $3200 the business pays at present to have outdoor seating overlooking Lake Wakatipu.
"My understanding, from legal advice, is if you apply to the High Court for a judicial review, that effectively injuncts us from paying the increase," Mr Impey said.
"We just wait until a decision is made as to whether we should pay that increase, or not."
Ms Jenkins said Hospitality New Zealand continued to work with councillors on the issue, and they "now understand why this is a big deal for the sector".
Queenstown Business Chamber of Commerce chief executive Sharon Fifield said they had suggested to council the timing was "really poor".
"It’s come at a really tough time.
"From what I understand, council staff aren’t budging on it ... but hospitality businesses ... haven’t budgeted for it, they haven’t forecast it, it’s come as a bit of a surprise, the quantum of the increases being so large."
She said businesses battled through Covid and endured particularly soft winter and spring trading, and have been preoccupied trying to "keep the doors open and the lights on".
"They need to be properly consulted when they’re being hit with a fee increase of this proportion."
Queenstown mayor Glyn Lewers could not be reached for comment yesterday.
