A group of affected businesses is taking Wellington City Council to court to stop the revamp of the city's Golden Mile.
The Golden Mile is the retail and hospitality strip that runs from the Embassy Theatre to Parliament, which the project by Let's Get Wellington Moving plans to make car-free.
Guardians of the Golden Mile is seeking a judicial review of the council's recent decision to commit $139 million to the revitalisation project.
Proceedings at the Wellington High Court were initiated on Tuesday 7 November by the group.
It is worried the council cannot afford the cost and that it will have to fall back on rate hikes for residents to get the work done.
There are also concerns about whether the council considered alternatives before committing to fund the current plan.
The group wants the council to back-track the funding to review the project and initiate "genuine consultation" with Wellingtonians.
In September, RNZ reported Guardians of the Golden Mile announced it would seek judicial review of the decision and sent a letter to the council asking it to stop work on the project.