"We never intended to alienate or divide any part of our community by developing the public track and we believe it is in the best interests of the broader community that a swift resolution occurs."
Ngati Kahungunu Iwi chair Ngahiwi Tomoana said this decision would help retain enduring relations between Craggy Range, tangata whenua and all the people of Hawke's Bay.
"I'm really happy, delighted and stunned by the news. I just can't believe it."
This news was welcomed by Hastings District councillor Henare O'Keefe who said he did not expect this outcome but Mr Wilding must have been "touched and moved by the cry of the people".
"There's no doubt about it, his heart's in the right place," he said.
"I never questioned his intentions...for him to make a call like that after spending more than $300,000 plus time and effort, that says a lot about a person. What a great man."
Hastings District councillor Bayden Barber also said he commended Craggy Range for the decision to remove the track, however, council needed to improve its own process around resource consents to prevent something like this occurring again.
"[Craggy Range] shouldn't have been in that position in the first place, that's really unfortunate.
"At the end of the day it's the right decision but it shouldn't have got to this particular point."
Hawke's Bay Regional Council chairman Rex Graham said the entire situation is a tragedy and a lesson on communication.
"We had a group of people who really tried to do something that they thought was good, they just didn't talk to the other people," Mr Graham said.
"They meant well and thought they were doing a really good thing for everybody.
"It's a lesson to all of us that we should learn to talk to each other."
Hawke's Bay Regional councillor Tom Belford said Craggy Range had done the right thing by responding to the outcry.
"Craggy Range's decision to remove their Te Mata track and restore the land is a courageous - and too rare - example of listening to the people and admitting an error of judgment.
"I hope the community responds with goodwill."
Hastings mayor Sandra Hazlehurst said the decision was up to the landowner and council would still be looking into how it balances "reasonable" private land use with the way its protects the natural landscape for consents.
Havelock North resident Anna Archibald, who created a petition with more than 4000 signatures calling for the removal of the track, said she was thrilled with the announcement.
"We're absolutely over the moon, it's a great, great outcome.
"It's just a shame that the hill got slashed and cut."
Mr Wilding said the decision was made after open and positive discussions with iwi representatives that gave him a deeper appreciation for their concerns and disappointment Craggy Range did not go beyond the council process and consult directly with them.
"We're sorry for the distress we have caused them and anyone else, especially because we went into this project believing it was a positive thing to do for the community."
The issue has come about because Hastings District Council chose not to publicly notify Craggy Range's consent application to develop the track into the upper reaches of the Peak, which are designated an Outstanding Natural Feature under the new District Plan, he said.
"When this furore erupted we were surprised to find out that council hadn't consulted with Mana Whenua in the consent application process.
"It is also disappointing and frustrating that we find ourselves the first casualty of an updated District Plan that does not appear to align with community sentiment."
"However, if Hastings District Council is taken to court over their decision, there will be no winners and frankly we don't think it is fair for ratepayers to foot the cost."
The alternative solution of removing the track mitigates the impact both to council and ratepayers, he said.
"That means, despite many people telling us they support the track, on balance we believe it is in the best interests of the entire community to remove it, restore the land and return the property to its previous owner and allow everyone to move forward."
