HDPL intended to create a subdivision, with Horvath Homes now proposing to develop 11 lots on the site.
Contractor Fulton Hogan was awarded the contract to develop the infrastructure required for the development.
Bruce Allan, company secretary for HDPL, said the tree was felled to allow the construction of the driveway and footpath.
"During the design phase of the subdivision we made every endeavour to retain the tree, but it was decided that it needed to be removed when it became necessary to relocate a power transformer from within the former nursery site to the entrance," Mr Allan said.
A photograph of the cabbage tree was emailed to botanist and author Philip Simpson, who estimated it was about 60 years old.
Mr McNeil maintained the council had been "unscrupulous" with the project.
"The whole thing has been a shambles. The driveway used to be lined with native kowhai and totara which have also been cut down.
"Native birds loved those trees, including the cabbage tree, which was the last one standing.
"Now it's gone, too."