Mediation talks between Queenstown surveyor and developer Chris Streat and Dunedin-based property developer Allan Dippie are on hold, with an Environment Court appeal looming.
Mr Streat's company, Streat Development Ltd, was granted resource consent by the Queenstown Lakes District Council in February to develop 90 lots for stage 3 of his Grandview subdivision.
The decision was subsequently appealed by Mr Dippie's company, Willowridge Developments Ltd, which is behind the neighbouring Timsfield subdivisionMr Dippie said he appealed the decision on the grounds it neglected to address the accelerated demands placed on infrastructure by the subdivisions.
Granting resource consent to stage 3 of Grandview meant development in the area would proceed in a "spasmodic, piecemeal way".
A comprehensive overview was needed for the extra demands placed on water supply, wastewater and roading, Mr Dippie said.
These would all come under pressure as Lake Hawea grew and would affect all residents.
Mediation talks between the three involved parties - Willowridge, Streat Developments and the QLDC - had been postponed at the request of Mr Streat, he said.
Mr Streat declined to answer questions and directed inquiries from the Otago Daily Times to the district council.
"The appeal is against their [the council] decision to grant resource consent," he said.
Council representatives directed inquiries to its planning and regulatory authority, Lakes Environmental.
Lakes Environmental planning manager Brian Fitzpatrick said to his knowledge the parties were involved in mediation.
He had not spoken to Mr Streat or Mr Dippie recently.
Mr Dippie said the appeal remained before the Environment Court, but the question of whether a hearing would take place was irrelevant until after mediation talks with Mr Streat.
The two subdivisions are located immediately south of the existing Lake Hawea township boundaries and bordered by Cemetery Rd.
