Developer Ian Cassels says the land occupation at Wellington's Shelly Bay will be "coming to an end reasonably soon".
But Mau Whenua member Catherine Love says that's news to her.
The $500 million development planned there, featuring 350 new homes, has been bogged down in legal challenges and disputes since its conception.
It's been occupied by Mau Whenua since late last year. The group claims the Port Nicholson Block Settlement Trust went against the will of its own people when it sold its land for development and that the deal was done in secret.
Mau Whenua represents those iwi members who voted not to sell the land, those who have reconsidered their position on the sale and no longer support it, and those who say they didn't get a chance to vote.
It also includes "all New Zealanders who oppose the current development proposal".
Cassels told Newstalk ZB's Nick Mills this morning the development was the "most misunderstood item in Wellington".
It will be a wonderful thing when it happens finally, Cassels said.
"Which it will do."
Cassels acknowledged there was a group of mana whenua who had ideas and grievances, but he said that was only a small number of people.
"I think that occupation will be coming to an end reasonably soon.
"There is an internal struggle within that iwi, which is not really my business to commentate on, but there are factions and arguments in the past and what I'm saying is that will and is getting sorted out inside that iwi arrangement."
But Love said there has been no progress.
"Unfortunately members of the trust [Port Nicholson Block Settlement Trust] have not been amendable to having discussion."
She said Cassels had asked to speak with her and she told him he could do at Shelly Bay with iwi members present.
The high-end housing development would provide everything people could possibly want, Cassels said.
"It's got so many things that could be done extremely well as examples of how good Wellington is. It will be what I call working green - it won't be a green token, or a green badge, or a green label, it will be a really green seaside community."
Cassels has previously pledged to ring-fence $10,000 for charity from the profit of every high-end home he sells.
Houses and apartments sold over $800,000 generate the donation to Wellington City Mission.
Proceeds from Shelly Bay will find their way to the City Mission, Cassels said.
"I find that to be entirely appropriate in the current environment where society is slowly getting ripped by wealthy people getting wealthier and poor people getting poorer."
Port Nicholson Block Settlement Trust has been approached for comment.