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Community association development subcommittee chairwoman April Mackenzie said yesterday she was "extremely disappointed'' the Queenstown Lakes District Council, at its meeting on Thursday, appeared likely to carry on with its plan to recommend the 400-lot development to the Government for final approval.
In September, the council delayed making the decision while more negotiations were conducted between the council, the community board and SHA developer Universal Developments Hawea.
A 56-page report prepared by council staff for Thursday's meeting details changes made to the proposal.
They include the formation of a paper road - Capell Ave - between the town and the SHA, two-thirds of the estimated $1.5million cost being paid by Universal Developments and by neighbouring developer Willowridge Developments.
The report recommends the proposal go to the Government for approval, subject to conditions.
Ms Mackenzie said, if the council decided the proposal should go ahead, the community association would call on Associate Minister for Housing and Urban Development Jenny Salesa to reject it.
"We think we've got a strong case.''
Ms Mackenzie said the council had not addressed the "fundamental issue'' of demand for affordable housing.
"You get an anecdotal statement from the council that there is a housing crisis in the district, but the [Special Housing Areas] Act requires it to be specific to the area you are proposing the SHA [for].
Ms Mackenzie said Stats NZ estimated from 2018 to 2043, 700 new dwellings would be needed in the region from Makarora to Luggate.
Universal Developments owner Lane Hocking said yesterday he had a list of 300 people who had inquired about a house and land package in the SHA, which disproved the argument there was no demand.
House and land packages would be sold for between $464,000 and $650,000.
Both Ms Mackenzie and Mr Hocking said that they would attend Thursday's council meeting.