Queenstown Lakes District councillors will decide today whether to set aside a special housing area (SHA) application by chief executive Adam Feeley's family trust while it is the subject of an Auditor-general inquiry.
The Rafa Trust's application is one of 13 applications for SHA status for consideration at today's full council meeting.
The Auditor-general has begun an inquiry into the trust's proposed subdivision near Arrowtown after receiving requests from the public over a perceived conflict of interest.
Queenstown Lakes Mayor Vanessa van Uden said in an emailed statement to the Otago Daily Times that any decision to set aside the application would be ''a matter for the full council to consider''.
The inquiry's terms of reference include what involvement Mr Feeley had in developing the council's housing accord and related policy for special housing areas.
When the inquiry was announced last Friday, Arrowtown Village Association acting chairman Wayne Hulls called for the application to be set aside.
The ODT contacted the Auditor-general's office to ask whether it was appropriate for the council to consider the trust's application while the inquiry was under way.
Spokesman Mike Heine said the office could not comment on any aspect of the inquiry until it had released its report.
