The petitioner for a 300-person prefabricated house on River Street and Burns Point Ferry Road in West Ballina has brought Ballina Shire Council to court.
The complainant GemLife initiated the lawsuit before the regional and environmental court of NSW.
Matthew Wood, director of planning and environmental health for the council, confirmed the news.
"The developer has appealed to the regional and environmental court, and that appeal is based on an accepted denial," he said.
"The council is currently preparing for this judicial matter."
The project originally cost just under $ 30 million, but after the council asked for technical clarification regarding the bottling required at the site, that amount was adjusted to $ 48 million.
The master plan for the new GemLife residential real estate development project in West Ballina.
Due to the cost of over $ 30 million, the application had to be automatically submitted to the NSW Regional Development Panel for decision.
GemLife chose to appeal to the court instead of going through the panel's process of "accepted denial," Wood said.
"In NSW, developers have the right to go to the Regional and Environmental Court for a specified number of days to process an application. In this case, they have chosen this route, which means that the Regional and Environmental Court actually decides. " this application in contrast to the panel, "he said.
"Because we have not made a decision or the committee, the accepted rejection means that the developer believes the rejection is possible and appeals against this decision."
The council's executive said the timetable for this trial will run the matter through 2021.
"It will take many months to deal with this matter, possibly well into next year," he said.
"At this point, not all of the dates have been determined.
"If we go to the court, the cost will be borne by the council. This is not a particularly regular affair, but we've had a number of cases (like this one) recently."
Burns Point Ferry Road residents are concerned about developments across from their homes in West Ballina.
The project has sparked a strong response from local residents. Some of them have raised their concerns to the council, including how the bottling will affect the adjacent ecological areas, traffic problems, rainwater management and bushfires.
Read more >> Fears $ 48 million development will "wipe out" West Ballina
GemLife also has a development application for a senior housing area on Skennars Head Road, Skennars Head, which is not related to this case and which will be decided by the NSW Regional Development Panel in the coming months.
GemLife has been asked to comment.