On one side is the Queenstown Lakes District Council, which, under the Housing Accord and Special Housing Areas Act, is not required to consult with the community on the proposals.
On the other are Arrowtown representatives who say that flies in the face of the council's lead policy on the Act, which states it will ''engage with the community'' on potential developments under the Act.
QLDC planning and development general manager Marc Bretherton confirmed there was no requirement under the Act for public consultation.
However, the council had sought ''feedback'' - at the request of mayor Vanessa van Uden - on the various expressions of interest posted on the council's website last week.
Ms van Uden said there would be no ''formal consultation process'', but anyone could provide feedback to councillors ahead of the next council meeting on May 28, when the item would be discussed.
While feedback would be considered by councillors, ''this is not a poll about how many people say yes and how many people say no'', Ms van Uden said.
But Arrowtown Village Association acting chairman Wayne Hulls said seeking feedback was not sufficient community engagement.''
That's what we're bitching about.''
''There hasn't been any consulting, there hasn't been any community engagement _ a thing saying `tell us what you think' is not community engagement.''
We want to be able to talk to them about it and we've got to do it before they approve, or don't approve, these damned areas, and that's the end of the month.''
The association had sent two letters to Ms van Uden, asking for a ''public meeting'' to discuss the SHA proposals around Arrowtown.
Ms van Uden said that would not happen.''
They [public meetings] are not usually people coming to listen or be informed. They're usually overtaken by one or two who have a very strong point to make.''
We have provided a way for people to have their say ... I don't see the value in having a public meeting.''
Mr Bretherton said under the Act resource consent process only immediately adjoining landowners would be notified of any approved development.
When asked if there was any way for others to appeal, or object to, any such consent application, Mr Bretherton responded: ''No''.''
It's a complex area, no doubt about that, and it's also uncharted territory for this council and for various other territorial authorities around the country and it is a departure from processes that are reasonably well known _ the RMA processes.''
But, it is an accord that the councillors signed up to in October last year.''
What we're seeing now is the implementation of what was inherent in that accord document,'' he said.
With respect to four applications made for land around Arrowtown, outside the Urban Growth Boundary, Mr Bretherton said the ''planning context'' could be considered in any decision made by councillors.
Ms van Uden said the Arrowtown boundary did not prohibit development outside the defined area, but it did make it a ''higher hurdle'' for anyone who applied for consent.
But Mr Hulls said the purpose of the boundary was to ''stop this damn urban sprawl'' and the association was against SHAs being ''around Arrowtown''.
He said that was ''not a nimby thing'', but because of the time, expense and effort the council went to to establish the urban growth boundary around the village.''
Now, if they're suddenly saying `We're forgetting those, we're going to let these people put subdivisions on the boundaries' ... that's just so inconsistent ...''
It makes sense to put it on the edge of somewhere like Lake Hayes [Estate] _ the Bridesdale one is sort of logical.''
It's just making Lake Hayes [Estate] a bit bigger; there's an obvious boundary there of the river, it's not visible from anywhere, it's hidden away and that's why we have boundaries in Arrowtown, is to try and stop this damn urban sprawl, stretching it all over the rural area.''
One application, for 150 homes at Ayrburn Farm, near Arrowtown, said the land was one of the only flat parcels of fully serviced, sun filled land in the Queenstown Basin where proposed housing could not be seen from the surrounding roads.
However, Mr Hulls said Ayrburn was ''in the middle of rural land which has been battled forever to try and stop'' residential development.''
They've got neighbours there that think they've got a rural area and all of a sudden they're going to have a whole lot of houses next door.''
The process
Queenstown Lakes District Council to discuss proposed Special Housing Areas at its meeting in Queenstown on May 28. Councillors may make a recommendation to Housing Minister Nick Smith.
Dr Smith considers recommendation against the Housing Accord and Special Housing Areas Act and, if approved, a paper will go to Cabinet.
If approved by the Government, the proponent can lodge a resource consent with the QLDC under the Act, which carries a ''limited scope for notification'', essentially only to immediately adjoining landowners.
Any development under the Act is not subject to appeal. However, any decision of the council is ''potentially judicially reviewable''.
Source: QLDC planning and development general manager Marc Bretherton
