US billionaire Peter Thiel’s bid for a sprawling luxury lodge overlooking Lake Wānaka is headed to the Environment Court.

Mediation between Queenstown Lakes District Council (QLDC) and Thiel’s company Second Star Ltd had not resolved all issues between parties and the case will now go to a hearing.

A hearing will likely be set for early next year, Environment Court case/hearing manager Chrissie McKee told the Wānaka App.

Independent commissioners rejected Thiel’s application last year, saying in the ruling that it would be “inappropriately dominant” in the Outstanding Natural Landscape (ONL) setting.

The US billionaire bought his 193ha Damper Bay site back in 2015.

The tech entrepreneur had sought consent for a series of buildings designed to sleep up to 30 people on his $13.5M Damper Bay property.

They were designed by Tokyo Olympic stadium architects Kengo Kuma & Associates. 

The extravagant, multi-building retreat with multiple pools, libraries and spa facilities, would be “plainly visible”, commissioners said.

Commissioners denied Thiel’s application for a series of luxury buildings last year. 

Their decision, made on behalf of QLDC, followed an earlier recommendation by council planner Sarah Gathercole to refuse the proposal. 

Thiel’s 193ha property, which he purchased in 2015 for $13.5M under Second Star Ltd, is located off Wānaka-Mt Aspiring Road.

QLDC media and channels advisor Sam White said the council could not provide comment on the topic.

“All discussions in the mediation, and since, and on this topic generally, are subject to confidentiality in accordance with the Environment Court’s directions and processes,” he said. 

PHOTOS: Supplied