Development company Fivex Property Group took the proposal to the Land and Environment Court before council even voted on the matter on the grounds the development application had not been processed within the statutory time limit.

Council’s reasons for refusing the plan will now be tested in the court when it begins its hearings on July 1. These reasons include zoning grounds, the noise impact from the proposed development and that the application provided “inadequate details”.

Ward 4 Clr Mark Greenhill said the koala enclosure was a 19th century proposal that had no place in the Blue Mountains.

“This does not — and should not — occur in the 21st century, especially in a compassionate and caring community,” he said.

As well as animal rights groups, the proposal has drawn the ire of the Katoomba Chamber of Commerce and Community and Blue Mountains Tourism Limited.

But Fivex Property Group general manager Lesli Berger defended the proposal, stating the company was “extremely disappointed in council’s decision to reject our application”.

“The proposal has merit on both social and economic grounds and will have no adverse impacts on neighbouring properties. If the proposal is ultimately approved by the court the proposed exhibits will form an important part of the local tourist infrastructure for the Blue Mountains and will be important anchor tenants for our centre,” he said.

Mr Berger attempted to turn the attack back on council, saying it had thwarted plans to amend the proposal in light of community criticism.

“Fivex heard the complaints raised by members of the community regarding access to natural light and fresh-air and proposed by way of compromise that an external enclosure be built to complement the proposed internal enclosure,” he said.