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Two Waitaki projects awarded $223,000 from the Government’s now closed regional and mid-sized tourism facilities fund may not meet the deadline for using the money.

Plans for a toilet and shower facility at Dunback Domain were likely to change due to possible environmental effects, and permission from Land Information New Zealand (Linz) had not been granted to build a toilet and car park on Crown land at Duntroon for the Alps 2 Ocean Cycle Trail, Waitaki Mayor Gary Kircher said.

Wastewater from the showers at Dunback was problematic; there was no sewerage scheme at the site "and it’s close to a river", and showers were likely out of the question, he said.

At Duntroon, Linz’s expectations were problematic.

"Instead of just giving us a straight out OK, they’re now saying we have to go through a more lengthy process for this bit of land ... and so that’s going to put us out of the timeframe for meeting the fund’s requirements."

"It’s just typical of these multiple layers of complexity of land ownership when it comes to who owns what and who’s looking after it.

"It was reasonable to assume that land that we have been looking after on behalf of Linz that’s been treated as a reserve for many, many years, we would get the OK from them, but the reality is, they have come back and said there’s a different process to work our way through, so we’ll do that."

In June, $691,000 was granted to projects in Otago as co-funding for infrastructure used by visitors.

The conditions were that the council used the funds in six months but the process Linz required "would take longer", Mr Kircher said.

Linz Crown property group manager John Hook said in an email the council had leased land at Duntroon since 1989 "for the purposes of beautification".

"The council has recently applied to Linz to be able to continue this arrangement and to construct toilet facilities on the land. Linz and the council are currently working through possible options."

Now, the Ministry of Business, Innovation and Employment’s (MBIE) regional and mid-sized tourism facilities fund has closed and  been rolled into the new tourism infrastructure fund. On Monday, the council applied for $60,000 for a feasibility study into tourism infrastructure needs for Omarama, Otematata, Campbells Bay, and Palmerston from the tourism infrastructure fund.

Mr Kircher said the council would discuss possible changes to the plans for the Dunback project and the delays faced by the Duntroon project with the ministry; funders "tend to be lenient", he said.

"Given the department that we’re dealing with that is causing the delay, or that the delay stems from, I think we should be all right, but it’s best to be up front with these people."

hamish.maclean@odt.co.nz