Local man Glenn Raymond built the hut to enjoy with his children and friends last summer.
It is hidden in trees in the lake's Frankton Arm, near the Kawarau Falls bridge.
But he has twice ignored government orders to remove it after consent was refused in August.
Crown Property (Land Information New Zealand) deputy chief executive Jerome Sheppard said: ''Following unsuccessful efforts to contact Mr Raymond, who now reportedly appears to have left the country, Linz plans to move ahead with removing the hut.''
It is understood that will cost the taxpayer about $10,000.
Mr Raymond tried and failed to ''legalise'' the tree hut as a mai mai, applying to Linz for a licence to occupy Crown land.
It was declined on the grounds the island was a likely nesting site for protected bird species.
The Otago Daily Times was unable to contact Raymond, who is now understood to be in Australia.
-By Philip Chandler
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Comments
$10,000 to remove it ?! I'd certaily like to see the full breakdown of costs ...
... "a likely nesting site for protected bird" ... "Likely" doesn't mean it is and unless there has been scientific reseach undertaken that can name the bird species and population, then it's nothing more than a guess.
How long is it going to take the "fun police" to remove everything that kids enjoy doing over the holidays ? Or instead of letting the kids get outdoors and active, maybe they are best kept inside playing computer games.
This is absolutely ridiculous and i'm just wondering how this all began ? As the tree hut isn't visible, then there must have been a formal complaint made to a government department or local council, it would be nice to know who made that complaint and reason for it.
Put the demolition rights out to tender, going by the photo most of the timber looks as if it is in good condition and recyclable...