A new Oamaru group, the Friendly Bay Society, is taking the council to court seeking a declaration as to whether the subdivision on Cape Wanbrow is lawful.
The council hopes to make $3 million profit from the subdivision, to offset the Opera House redevelopment cost.
The court has set down a hearing for the society's application in Dunedin, rather than Oamaru, on June 26.
A hearing of the application was offered by the court on June 12 and 13, but one of the society's representatives, Wayne Stringer, was not available.
While the society said there was no urgency over the hearing, the council wanted it resolved as soon as possible.
Judge Jeff Smith said the society preferred a hearing in Oamaru, but given it would take less than a day, it should be heard as soon as possible.
Time was available in Dunedin on June 26 and Judge Smith said that was the "closest, convenient and efficient" venue which suited the court.
The society has challenged the granting of resource consent for the 5.84ha subdivision.
It includes land designated as "reserve", but the council believes that is an error which occurred in 1937.
The council hopes to have the reserve status lifted by Parliament in the Reserves and Other Lands Disposal Bill.
The society claims the subdivision consent and reserve land disposal should have been publicly notified, as the effects on the landscape were significant in an area of great importance to the town and community.
The issues the society wants addressed are:
• Whether the council has an unencumbered title to land subdivision land.
• The lawfulness of the council's procedures.
• Whether the Reserves Act and/or a recreational zone applies to the land and whether the court has jurisdiction.
• Whether or not the trees are protected under the Reserves Act.
• Listed to appear for the society are Mr Stringer and Barry Monks and, for the council, Michael Garbett of Anderson Lloyd, Dunedin.
Forrester Heights
• Where: Cape Wanbrow, Oamaru.
• Developers: Waitaki District Council.
• Covers: 5.84ha.
• Lots: Originally 27, now 23 with four held back.
• Sections: 610sq m to 1540sq m.
• Prices: More than $300,000.
• Profit: Expected $3 million for $9 million Oamaru Opera House redevelopment.
• Features: Most expensive residential sections in Oamaru, north-facing, spectacular views over Oamaru, the harbour and coastline.
