A potential conflict between Dunedin's two local authorities has been resolved, with the Otago Regional Council selling a piece of land wanted by its city counterpart for roading developments.
The regional council had planned to build a new depot at the end of Taieri airfield, but the city council wanted to move the airfield north to accommodate its $3.2 million plan to link Centre St and Carncross St in Mosgiel.
The city council had warned the matter could end up before the courts if negotiations between the parties were not successful.
Otago Regional Council corporate services director Wayne Scott said they had withdrawn the notice of requirement for the 1.5ha piece of land in Odlins Pl, as it had on-sold the land to the Dunedin City Council.
"When we bought the land, we were unaware of the Dunedin City Council's issues . . . [which] would compromise the use of the site."
After the regional council had applied for the change of designation, it was advised of the issues and went into discussions with the city.
The regional council decided to sell the property at a price which "more than covered its costs", he said.
It was now looking for a new site to house its Taieri depot.
Its Riccarton Rd depot, in an old dairy factory, was in "ill-repair and past its use-by date", Mr Scott said.
The depot was also in a very flood-prone location which was not suitable for the materials the council was storing there.
Ultimately, it was planned to demolish the building and possibly use the land as part of the council's flood control scheme.
