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A Queenstown developer is planning a major commercial and residential subdivision - partially on land the courts have determined should be earmarked for airport expansion.
Remarkables Park Ltd, the developer behind much of Frankton's expansion, applied for resource consent for the subdivision on about 42ha of land above Hawthorne Dr, Remarkable Park, last month.
The subdivision will contain a 16ha plot of land on Queenstown Airport's southern boundary, which makes up most of Lot 6 - land owned by RPL on which the airport is looking to expand.
After a strenuous seven-year dispute in court between the Queenstown Airport Corporation and RPL, QAC won the case over the redesignating of Lot 6 for its expansion.
The court left it up to the two parties to reach an agreement, but QAC won the right to compulsorily purchase the 16ha section of land if a deal was not made.
Remarkables Park Ltd chief executive Alastair Porter would not say how much he thinks the land is worth.
He said RPL was waiting to ''find out whether they [QAC] are going to buy it or not.
''This plan doesn't prevent anything they want to do or impact their designation or ability to buy the land.''
He denied that the subdivision proposal is a sort of bargaining chip in the process of QAC buying the land.
''It's got nothing to do with the airport proceedings.''
The planned 42ha subdivision will include 84 freehold lots, extensions to Red Oaks Dr and Mountain Ash Dr, as well as three new roads.
The developer's plans for the land include some housing or visitor accommodation and a new $30million medical centre with specialised units, at the southern end of the subdivision.
The northern part, containing Lot 6, is expected to be used for entertainment, sport and recreation purposes.
Mr Porter said RPL has ''got clients who wish to get on with the recreation area''.
He added the airport's noise boundary restrictions on further development around the airport would not impact the subdivision.
QAC previously argued that the developer had dragged out the court case over the redesignating of Lot 6.
Remarkables Park's application for a hearing to try to recover more than $1.75million, about 60% of its legal costs built up during the court battle, was declined last year.
Rachel Tregidga, QAC general manager of property and planning, said the corporation's ''not able to make a comment at this time because we're still in Lot 6 court proceedings''.
While redesignation has been approved by the Environment Court, both companies are still waiting on the court to publish its final decision.
Queenstown Lakes District Council planners are vetting the application, which RPL requested to be non-notified.