The 38-hectare development, about 4 kilometres west of Kamo, is bounded to the east and west by grazing land and to the south by the Pukenui Forest. The lots ranged from 1700sq m lifestyle blocks to larger lots of up to 3 hectares.
On November 11 Whangarei District Council denied a request from Mr Reiher for a $500,000 reduction in his development contributions in exchange for reserve land and facilities - including a network of walkways leading to he Pukenui Forest - which he said would be a "valuable public asset".
"I believe the council's probably not using the discretion it has the ability to use," Mr Reiher said. "I'm not being miserable, I've put an enormous amount of infrastructure in, outside the development as well as inside. The [Pukenui Forest] access is of huge amenity to Whangarei."
Councillors turned down the request on the basis that it could "set a precedent". A council report recommended that the request had been heard too late in the consenting process and that the assets in question were mainly for the Karanui community, not the general public. The council would already be responsible for the maintenance and renewal of the assets vested to it once the development was complete - "a fair exchange", the report said.
Mr Reiher said he was disappointed in the decision and was not sure at this stage whether it would influence his plans.