But there is a chance the decision could be reversed.
The late John Martin, in 2007, saved three historic miners’ cottages in Arrowtown’s Buckingham St from demolition by neglect by buying them, and a neighbouring Merioneth St property, for $1.9million from developer Eamon Cleary.
He then on-sold the parcel for the same price to the council, under whose ownership the cottages were restored.
The Queenstown Lakes District Council (QLDC) largely paid for the properties from Arrowtown reserve funds and the sale of Arrowtown leasehold sections.
The council has sold the Merioneth St property, with a 1978 house on it, for $2.761m — almost $300,000 above its capital valuation (CV) — to pay off debt, as resolved in the last term.
Mr Martin’s widow Susanna Martin said "the fact it’s gone into the Queenstown pot is just an absolute joke".
"That money, in every way, shape and form, Johnny would have anticipated would have been given to Arrowtown to assist in its heritage zone revival, because this is what he did this for, to save the historic zone.
"It was not done for profit, it was not done for any reason other than to allow Arrowtown’s historic zone to be held safe.
"There’s a great deal of projects that money could be incredibly beneficial towards and that, as Johnny’s executor, is where it should have gone."
Mrs Martin said if her husband, who died in 2021, had been alive, "he would be taking them to court".
Her stand was supported by former Arrowtown councillor and museum director David Clarke, who chaired the Arrowtown Cottages Trust which fundraised for the restoration of the cottages.
In an email to Queenstown Lakes District Mayor John Glover and Arrowtown-Kawarau ward councillors, he said the Merioneth St property’s CV "far exceeds any contribution Queenstown Lakes District Council made to the overall project".
He suggested it got its return plus a reasonable profit margin, but then put a good proportion of the sale price into the $2m campaign to save Arrowtown’s crumbling Butler’s Wall, above Butler’s Green, before it collapsed.
"It seems only right that QLDC look at using the sale of an Arrowtown asset (given how that asset was funded) for another great heritage project."
In an email to another party, Mr Clarke said "John Martin brokered a deal that I am sure didn’t envisage QLDC making a big capital gain and putting the proceeds into the debt hole.
"It would have been an easy win for the new council to give some money back to the community that did all the work and all the fundraising."
Arrowtown Village Association deputy chairwoman Nicolet Spice, speaking on its behalf, said "I believe the money that was donated to the historic preservation of Arrowtown should be used for the Butler’s Wall restoration, and not redirected to council debt".
"QLDC has withdrawn the funding it had previously allocated to this urgently-needed project."
Rick Pettit, another former councillor who was also on the trust, said it was his expectation the proceeds of the Merioneth St sale should also go to the Arrowtown community — "it was bought with Arrowtown community funds".
Former AVA chairman Richard Newman agreed.
"Absolutely it should have come back to Arrowtown."
Asked for his comment this week, Mr Glover told Allied Media he would be amenable to the council reviewing the proceeds of the sale.
