Queenstown Marina Development Ltd was granted resource consent last year for a 240-berth, offshore marina and onshore support facilities.
However, he was surprised to hear the council had now advertised for new expressions of interests.
Director Buzz March said he was "very disappointed" in the council's decision.
"It is totally inappropriate. After all, it was only last Thursday we got full resource consent after all the appeals were settled in the Environment Court. We have resource consent to build this marina," he said.
He said it had taken four and a-half years and more than $2 million to get to this stage.
"Now we find ourselves in this position where the council is re-advertising the development.
"With the economic climate we are in, it should be good news for Queenstown that we have the consent," he said.
He hoped he could negotiate with the council to start building the marina.
Council chief executive Duncan Field said the council was now seeking expressions of interest from developers because Queenstown Marina Development had failed to get its resource consent finalised before an agreed deadline.
He said the deadline had been extended on several occasions.
The council had reached the view that it needed to refresh its mandate given the time that had passed since this project commenced, he said.
"Council was really keen to have the project completed in a timely way . . . We expected Queenstown Marina to have the project done in two years. It's now four years so we think it is really time to review whether we have the right solution and to review our enthusiasm in the project," he said.
He encouraged Queenstown Marina Developments to submit an expression of interest but it also welcomed new proposals.
"It is a very significant and important development and we are sorry we have not been able to progress the current relationship further with Queenstown Marina Developments, despite the best efforts of both parties," Mr Field said.
There was an unrealised demand for quality marina facilities in the district.
"We anticipate some strong interest. This is an opportunity for an experienced marina developer to be involved in a premier destination resort," Mr Field said.
The deadline for expressions of interest was October 2.
The council will then shortlist developers to submit a preliminary design proposal and councillors will then select the preferred development company.
