West Coast Regional Council efforts to overcome Scenic Circle Hotel Group’s refusal to give affected party approval for the $12.4 million Waiho (Waiau) River flood scheme have failed.
It will now go to a formal hearing after Easter.
The issue was discussed in a confidential meeting of the Infrastructure Governance Committee.
Deputy chairman and Westland councillor Peter Haddock said his talks with Scenic Circle were ongoing in the hope they would withdraw their objection.
"That hasn’t worked out to-date so it will have to go to the hearing."
The new stopbanks are proposed next to the former Scenic Circle Mueller Wing, which was destroyed in 2016 when the Waiho River burst over the top.
The hotel group wanted assurances their staff and guests would be safe in extreme weather events.
In a recent statement, Scenic Circle Group executive chairwoman Lani Hagaman said the new stopbanks were essential for future investment and insurance in Franz Josef and the group fully supported efforts to get the work started.
"We’ve put that in writing to the [West Coast] regional council to share with the Government."
However, the hotel group was first made aware of the plans for the new stopbank in late September and work was officially notified by the council just before Christmas.
"Since September we’ve been working constructively with the council and its consultants to try to progress the resource consent as quickly as possible," Mrs Hagaman said.
Before the council discussion this week, Cr Haddock declared a conflict of interest relating to the council contract for the stopbank improvement scheme.
Last year while campaigning for a seat on the regional council he distanced himself from his family connection to the contractor for the project, Greymouth company MBD.
He said then he was not connected to the company, which involved his son.
MBD was awarded the contract nearly a year ago to undertake the work.
Cr Haddock acknowledged he had declared an interest because his son was at MBD and they had been awarded the contract "before my involvement on the council".
Meanwhile, the council was making good advances on projects to strengthen Hokitika flood protection, and to strengthen the existing Greymouth floodwall, he said.
Both co-funded projects are recipients of shovel-ready money from the Government.
"We’re hoping in the next two months to go to tender on those projects."
The council was conscious of the need to meet the terms of the funding and get started with work.
Some consents and affected party approval for the Greymouth project, to raise and improve the existing 30-year-old floodwall would be needed, Cr Haddock said.
By Brendon McMahon
