The pin has been pulled on a multimillion-dollar Queenstown development aimed at solving some of the resort's housing woes.
Bowen Street Cottages, 32 proposed homes just off Gorge Rd, was bought for $2.45 million in August last year by developer Gerry Oudhoff, his wife Sharon, and business partner James Hennessy, as Bowen Creek Investments Ltd.
Mr Oudhoff has instructed Harcourts, the estate agency managing the project, to advise potential homeowners the deal is off and deposits will be refunded with interest.
An email from Harcourts, shared with the Otago Daily Times, said.
"Our client [Bowen Creek Investments Ltd] has been unable to obtain a resource consent on terms and conditions entirely satisfactory to the company.''
The email also hints at Queenstown Lakes District Council and Otago Regional Council delays.
"Our client has been very concerned about the time taken to have the resource consent dealt with and the potential for further delays to be incurred without any indication of a clear timeframe within which a decision would be available.''
The bone of contention appears to sit around an Otago Regional Council request for an engineer's report peer review.
Until it is completed, the QLDC, which is responsible for the resource consent, "will not progress the application''.
ORC director of engineering, hazards and science Gavin Palmer said this was not unusual, given the setting and scale of development.
"It would ensure an informed decision was made ... we felt it was necessary. We kept an open mind on it.''
The report, which would have looked at natural hazards within the proposed development area, could have been "enabling'', he said.
The site is in the middle of a flood hazard zone caused by two nearby creeks.
Brewery Creek, in particular, caused chaos during the 1999 Queenstown floods, when large volumes of debris and sediment inundated the area, cutting off access to Gorge Rd and affecting businesses and residential properties.
Mr Oudhoff was reluctant to talk to the Otago Daily Times because of concerns not all buyers were aware of the news.
He said: "In all honesty, we are disappointed - foremost for the buyers that have been let down.''
QLDC planning and development general manager Tony Avery said staff were working with the developer to resolve issues.
"My understanding is that we [the QLDC] were still waiting on information from the developer about how they proposed to deal with natural hazards associated with the site, before being able to continue with processing the application.
"It is unfortunate that the developer appears to have made arrangements with prospective buyers before obtaining the necessary approvals, as the site was not without its issues and we needed to be certain that the natural hazards were going to be addressed appropriately.''
The Bowen Street Cottages site is next to a council-proposed special housing area that includes the current Wakatipu High School site, excluding the playing fields, and, on the opposite side of the road, all land from the Caltex corner down to and including Gorge Rd Retail Centre, next to Matakauri Park.
It is currently being considered by Housing Minister Nick Smith.
