Council chief executive Jim Harland said yesterday STS, now known as Sort the System, had been given adequate time to arrange payments, but its offer to repay interest on the debt up to October's elections, then pay the balance by December, was "not acceptable".
STS president Dave Witherow said Mr Harland's actions would lead to the organisation being forced to wind up, leaving it unable to raise any money to pay the debt.
"This is politics, not economics. Jim Harland wants rid of STS, who will obviously be a big thorn in the DCC's side come October."
Mr Harland said yesterday he did not want to get rid of the organisation, but there was a matter of principle: STS or any body entering court proceedings had to be aware they may lose and have to pay costs.
There was a debt outstanding, the debtor had been given ample time to pay, and the money, plus 7.5% interest, was being collected on behalf of the ratepayer, he said.
"I'm treating them like any other debtor."
The dispute follows a Court of Appeal hearing in Wellington in August last year, which ruled the council had not acted contrary to the Local Government Act when it signed a contract with Hawkins Construction to build the Forsyth Barr Stadium.
In September, the court ruled STS had to pay costs.
Mr Harland took the organisation's plan to pay the costs by December to a council meeting in March, but was told he should deal with the matter.
Mr Harland said he had written to the group before last Christmas, offering a time payment option over a year. Interest would not be charged.
"No cheque was forthcoming. It's nearly eight months [since the ruling on costs]."
STS had not had "the courtesy" to acknowledge letters, and after several attempts to make contact, a meeting was set up in March, at which time the council offered payment over seven months, and Mr Witherow offered to pay by December.
STS was given until April 30 to begin making payments.
Mr Harland said the council had gone out of its way to allow time to pay.
"In the interests of the city's ratepayers, I believe this is an appropriate course of action to recover a debt determined by the courts."
Whether there was any personal responsibility depended on STS's constitution, but the result of the action appears to be its liquidation.
Mr Witherow said $1000 had been paid in the past two days.
He said if STS had wanted to avoid responsibility, it could have dissolved months ago and walked away.
"Mr Harland's ultimatum makes no sense, especially from the ratepayers' point of view."
He was "adding to their financial burdens by throwing money at a firm of lawyers in an action designed to terminate STS and thus ensure no further repayments of the moneys owed."
"How can that benefit the ratepayers?"
STS would have "no problem" raising the money at election time when issues, especially the stadium, would be in the spotlight.
Mr Harland said he had no confidence people associated with STS would "dig into their pockets" at election time.
"They entered into the court case, and they knew the consequences."
STS had 15 working days to pay the money, or enter a new payment agreement, but the December payment suggested would not be accepted.
"If they put forward another alternative, I can look at it."
Responding to the criticism of STS's decision to enter the court case without money to pay costs, Mr Witherow said if any public interest group only took court action when they had "a war chest" to pay for it, "nothing would happen".
