A local developer says he was forced to break the law over a land dispute with Queenstown Playcentre.
Lew Gdanitz, of Mipad Holdings Ltd, is building a 54-bedroom, $10million hotel in Henry St, which shares a boundary with the educational facility in Stanley St.
He dismantled a boundary fence on Saturday morning and replaced it with a safety barrier that encroaches on playcentre property by 2m.
Mr Gdanitz told the Otago Daily Times his actions were simply done with child safety in mind.
The Ministry of Education, which owns the land, responded, saying the new fence did not meet safety standards.
Mindy Swigert, of Queenstown Playcentre, the independent organisation which leases the land, declined to comment when contacted.
Queenstown Lakes District Council and the police were also drawn into the dispute.
Wakatipu Community Constable Zoe Albon, of Queenstown, confirmed police attended the building site at lunchtime yesterday.
She would not confirm who contacted them but confirmed it was not a police matter.
After listening to both sides of the argument she described it as a "tricky'' situation.
Taking the ODT on a tour of the site, Mr Gdanitz pointed out safety concerns.
His hotel will sit approximately 30cm from the Playcentre boundary.
"I know I am breaking the law but I am doing so to try to protect the children. I don't want to be held responsible for an accident. What if a cellphone fell out of a tradie's pocket and whacked a kid on the head?
"The school is insisting we put the fence up against our property but that isn't protecting the children. As a company director, that responsibility is mine.''
He claimed the 2m buffer would act as a safety zone.
However, the ministry's head of the education infrastructure service, Kim Shannon, said there was a real risk children might be able to get through the new fence.
"We would expect the installation of a safety fence around a construction site to be the responsibility of the company. We would expect such a fence to be erected on their own property, as it had not been agreed with us.''
Another bone of contention was financial matters.
Mipad Holdings said it was prepared to put up hoarding where the new fence now stands, and to make a one-off ex gratia payment for use of the 2m strip of land, but a suitable figure could not be agreed upon.
The company offered $5000, and the Playcentre sought $32,000.
The two parties were unable to reach a compromise, Ms Shannon said.
While the developer was occupying ministry land without permission, she would work with both parties to attempt to resolve the issue.
Mr Gdanitz said he was not convinced an agreement would be reached.
"It isn't that I'm being hard-nosed. I know this could look like I am being the cowboy, but I've been left with no choice.''
Ms Shannon confirmed the ministry was seeking legal advice and had asked the council to clarify resource consent terms and conditions in relation to the building work.
QLDC communications manager Michele Poole said the council did not believe the company was in breach of its resource consent.
- Louise Scott