Hotel developer to seek costs

A developer is promising to pursue costs and damages, which he says could run into hundreds of thousands of dollars, after winning a high court case challenging the building of a new hotel in Lake Takapo¯ /Tekapo.

The group Lake Tekapo Community and Friends Inc attempted to quash the resource consent the Mackenzie District Council granted to Tekapo Sky Hotel Ltd to build a hotel in the township in 2017, on the basis it had not gone out for public notification.

Judge Gerald Nation found in favour of both the council and Tekapo Sky Hotel Ltd, which is owned by NZ Horizon Hospitality Group, saying the effects of the development ‘‘were not such as to require limited notification of the application’’.

The judgment said as the council and Tekapo Sky Hotel Ltd had been successful in the proceedings, they are entitled to seek costs.

Lake Tekapo Community and Friends Inc spokeswoman Natalie Zuleta said ‘‘Whilst the result is obviously disappointing, we do not regret in any way pursuing this case’’.

‘‘There were several noncompliances with the proposal. Council’s decision to grant resource consent on a nonnotified basis, we felt, needed to be tested.

‘‘It is unfortunate that the judge on the day assessed these non-compliances as having less than minor effects on the surrounding environment. A judicial review does not address the merits of the decision but focuses entirely on the process involved in reaching that decision.

‘‘Despite the outcome, we hope that the Mackenzie District Council will now be more transparent in its future dealings with developers, and take into consideration the views of the community when making decisions that will impact those who live in it.’’

NZ Horizon Hospitality Group director Anthony Tosswill said he ‘‘will be pursuing costs and damages, even though they [Lake Tekapo Community and Friends Inc] are insolvent’’.

‘‘Additionally, we are reviewing our position and claims re: the instigator of the fictitious and frivolous action instigated by Ms Natalie Zuleta, on Facebook and other social media and the court action that she and a society set up for that action, that will result in claims in the hundreds of thousands.

‘‘Eighteen months this project has been delayed at no fault of Tekapo Sky Hotel Ltd.’’

Council spokesperson Chris Clarke said ‘‘council has maintained from the outset that the resource consent was processed in good faith, in line with our interpretation of the relevant regulations, and has at every step endeavoured to be open and transparent with regard to the process’’.

‘‘Council published information and comprehensive Q&A on the MDC website; however public perception of this issue has been hampered by the circulation of misinformation. This is an ongoing challenge, and we encourage the community to take their information from official sources and when in doubt approach council directly for clarification.

‘‘The judge ruled that council and Tekapo Sky Hotel are entitled to recovery of costs, and council will now consider their options in this regard,’’ Clarke said.

‘‘This litigation has come at very significant cost – both financially and in terms of time and resources – the bulk of which will unfortunately be borne by ratepayers.

‘‘Council is pleased that we do not need to expend further time and ratepayer funds on this matter and can continue to focus our resources on the work we do to serve our communities,’’ Clarke said.

‘‘We are reviewing our position and claims re: the instigator of the fictitious and frivolous action instigated by Ms Natalie Zuleta, on Facebook and other social media and the court action that she and a society set up for that action, that will result in claims in the hundreds of thousands..’’ Developer Anthony Tosswill