An Alexandra businessman says he is "disappointed'' a subdivision he planned at the site of the William Hill Winery is not allowed to go ahead.

Yesterday, the Central Otago District Council released a report which said consent for the development had been declined.

Russell Ibbotson, who owns Molyneux Lifestyle Village Ltd, the company which was developing the subdivision, said given the public interest it was a shame it could not progress.

"There's widespread community support - all the sections had been sold.


"But the decision's been made, and one must accept it.''

The subdivision would have been along Dunstan and Waldron Rds, on the site of the William Hill Winery, on the outskirts of Alexandra. The winery still operates there but the vineyard is defunct. Another part of the proposed subdivision site was dryland pasture and had never been used as a vineyard.

Commissioners Andrew Henderson (chairman), Neil Gillespie and John Lane said the subdivision would not maintain the values of the rural environment within the district plan.

Yesterday's report said the proposed subdivision would have created an ``island'' of dense rural residential development.

It said the density was "inappropriate'' and would negatively affect the site's character and amenity.

Although the commissioners acknowledged that since the hearing panel on December 6 the applicant had made improvements to traffic visibility concerns and there would be no adverse effects to health, it would have negative effects on the productive use of the land and soil in the area.

The report acknowledged the subdivision may have had a positive effect in residential housing in Alexandra, and would support the local building industry, businesses and retail.

However, they did not see those points as significant enough to grant the consent.