The owners of the Five Mile development at Frankton, near Queenstown, are appealing to the Queenstown Lakes District Council to allow new noise-sensitive activities within the Queenstown International Airport's outer noise boundary.
Queenstown Gateway Ltd, owned by Auckland developer Anthony Gapes, and 5 Mile No. 2 Ltd, owned by Allied Farmers, made a joint submission on Queenstown Airport Corporation's proposal to expand its noise boundaries and operating hours at a hearing in Queenstown yesterday.
The proposal includes banning any new activities sensitive to aircraft noise in the expanded outer control boundary.
Such activities would include residential use, visitor accommodation, educational or community facilities or day-care facilities.
The expanded boundary would include most of the Five Mile development.
The first stage of Five Mile was sold in November 2009 by Hanover Finance to Queenstown Gateway Ltd.
Allied Farmers purchased the assets of Hanover Finance and United Finance last year.
Lawyer Ian Gordon, representing the owners, told the hearing the companies had consent to build a supermarket and up to 324 visitor accommodation units.
It was also part of a structure plan for the Frankton Flats Special Zone, which includes education, commercial, recreation and residential development.
He said there was no justification to prohibit activities and the proposal was "ill-considered".
"There would be adverse consequences from unnecessarily limiting the areas available for residential development," he said.
Queenstown Gateway Ltd would "readily accept" a no-complaint covenant on its land, he said.
The Five Mile property was once owned by Christchurch businessman, David Henderson through the entity Five Mile Holdings Ltd, which was placed into receivership by Hanover Finance in July 2008.
The hearing continues today.
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