At a meeting of the Queenstown Lakes District Council, councillors took turns to deliver broadsides at an alleged lack of action by the organisations in addressing traffic congestion in the Ladies Mile area.
They then narrowly approved, with Mayor Jim Boult and three councillors opposed, deferring a decision on the contentious Laurel Hills housing proposal until next month's meeting.
Council staff had recommended councillors approve the SHA, in which it is proposed 156 homes be built on 9.4ha of land along Ladies Mile.
Cr John McDonald suggested the vote be deferred to avoid "pre-deciding" two other SHA proposals for the Ladies Mile, Glenpanel East and West, to be considered at next month's meeting.
Councillors warmed to their task after a comment by a transport consultant for Laurel Hills, Chris Baker, that residents in the area would have to make a "significant modal shift" out of their cars to prevent traffic spiralling out of control.
Cr Scott Stevens dismissed that as "wishful thinking", and questioned the logic of NZTA's recommended "pause" to development on the Ladies Mile after 1200 new homes were built.
The time to pause had already been reached, he said.
It was "beyond belief" the ORC was not running direct buses from Lake Hayes Estate and Shotover Country into the town centre, he said.
"They need to act before I support this proposal."
Deputy mayor Calum MacLeod said the Shotover Bridge was an "absolute chokepoint" for the Ladies Mile, and it was "madness" Shotover Country residents were waiting 30 minutes to drive out of the subdivision every morning.
Mayor Jim Boult said he was "enormously frustrated" by his dealings with the NZTA, and had pleaded with the regional council for direct buses between the two suburbs and the town centre.
"I can't agree to more subdivisions that will put more cars on the road.
"It pains me to say that, because probably the biggest issue in this district, besides infrastructure, is the cost of housing."
Cr Ross McRobie said the resort was being "held to ransom" by the ORC over transport projects.
Speaking during the public forum, Lake Hayes Estate and Shotover Country Community Association chairman Clark Pirie said the "vast majority" of more than 300 submissions on Laurel Hills were strongly opposed.
"You would have to be asleep under a bush to think there was capacity in the roads or in Ladies Mile for more development."
Max's Way resident Joe Bagrie said Laurel Hills would be "sea of grey roofs" visible from the Ladies Mile highway, while Shotover Country resident Ian Scott said his home and the houses around it would be shaded for several hours a day by the development.
