Port Lincoln Proper Pty Ltd, with Olympian Dean Lukin as co-director, suing Port Lincoln council

An Olympic gold medallist’s company and a country council are embroiled in a legal stoush over ownership of a small parcel of land that threatens one of the state’s biggest regional developments.

• Lukin family’s $289m Port Lincoln development gets nod

An Olympic gold medallist’s company and a country council are embroiled in a legal stoush over ownership of a small parcel of land that threatens one of the state’s biggest regional developments.

Port Lincoln Proper Pty Ltd, which lists directors as weightlifting legend, Dean Lukin, 58, his son, Dean Andrew Lukin, 35, and mother Ann, 79, are suing the local authority.

The Supreme Court dispute centres on bureaucratic blunder claims over a proposed community grass reserve within the family’s $289 million Eyre Peninsula development.

Their firm accuses the council of negligence and breaching a duty of care.

Lukin Corporation chief executive Dean Lukin Jnr flanked by Greg Norman and his father Dean Lukin.

A new housing estate was approved despite part of it encroaching on a section of a reserve, which the council later refused to rezone, court documents allege.

Port Lincoln Council denies the allegations or that it should pay $242,096.44 in damages as well as court costs, interest and any judge-imposed orders.

The developer claims it is out of pocket, having wrongly paid for bills and other expenses after a plot sale fell through amid a dispute over ownership of the 7632sq m reserve.

Lukin Corporation chief executive Dean Lukin Jnr said the legal dispute was threatening the project’s viability.

“Warren Buffett would lose money in these circumstances as he would be paying other people’s … bills,” he said in reference to the successful US businessman.

Mr Lukin said his firm had been charged over land they now didn’t own.

“I wish I could quantify the damage to my integrity but I can’t,” he said.

Artist's impression of the Greg Norman-designed shark-shaped golf course, wharf revamp, hotel, commercial centre and industrial precinct.

The 20-year project includes housing, a Greg Norman-designed shark-shaped golf course, wharf revamp, hotel, commercial centre and industrial precinct.

At least 50 blocks have sold for between $119,000 and $220,000 while 15 homes are built on 109ha of former industrial land near Lincoln Cove Marina, in the city’s south.

In its statement of claim, the developer accuses the council of failing to exercise “reasonable care, skill and diligence”.

In its defence statement, the council accuses the family of “misleading” conduct.

It said the developers, and its conveyancer, should have known they did not own the disputed land while also alleging it was unaware of the problems.

Council boss Stephen Rufus would not comment. A settlement conference is next month.