The Waitaki District Council Reserves and Other Land Empowering Bill, which sought to change the reserve status of a 5.8ha section of land overlooking Cape Wanbrow, has divided opinion in the town since it was introduced to Parliament through a local Bill in May.
However, after five months of hearing arguments, the local government and environment select committee last week verified the land's status as endowment land.
Waitaki MP Jacqui Dean said the decision, which had been passed back to the House, would give the Waitaki District Council finality as to who owned the land.
"The process through which the land's status had passed had been protracted and searching, but the committee made its decision on the facts and evidence before it and not on anecdotes.
"The committee received very good submissions and took a lot of advice prior to confirming the endowment land status.
"The good news is that status has been verified and any future use of the land will be in the hands of the local council," she said.
The council lobbied for the introduction of the Bill to change the reserve status of the land because an administrative error had mistakenly classified it as a reserve.
The error was discovered when a planned 22-section subdivision, which was expected to bring in $3 millon of profit for the council, had to be postponed, and although Mayor Alex Familton would not speculate on what would happen next, he welcomed the select committee's decision.
"The decision is as we expected.
"Endowment land is in fact what we applied for."
Waitaki Concerned Citizens and Ratepayers Association chairman Warren Crawford said ratepayers in the district were "very disappointed" with the decision.
He said he was concerned the land could now be "split up" into a residential development.
"We believe that the decision is wrong, and it should be reserve land for all to enjoy for forever and a day."
The Bill still has to pass its third vote in the House, but given the select committee's report, the vote is expected to be a formality.
