The company must re-plant the area and undertake work to decontaminate the land.
A statement from the regional council said it and the city council received complaints in April last year about demolition material containing asbestos being taken from a church demolition site on Fraser St to 'C' Side Service's Grange Rd base.
Samples taken tested positive for white, brown and blue asbestos and Mr Walling was issued with an abatement notice to stop work.
He said he was laying clean-fill, dirt and concrete to form a driveway to a house and create a grassed garden area with exotic palms.
He took 15 truckloads of demolition waste to his company's site and allowed two other contractors to dump concrete and dirt there.
In total, 372sq m of "special ecological area" and its surrounds were cleared of vegetation.
"An environmental report said the cleared area contained some indigenous vegetation and was an integral part of a larger area of indigenous vegetation and habitat," the council statement said.
A report from Tonkin and Taylor said material containing asbestos at the site posed an "immediate and long-term risk" to human health if no management controls were in place.
