A Russell ratepayer is threatening court action over moves to change the ownership of the town's wharf.
The Far North Council-owned wharf is in line for a million-dollar makeover from the government's Provincial Growth Fund, if the business case stacks up.
The council is keen to hand the wharf over to its commercial arm, Far North Holdings, which runs most of its wharves and boat-ramps.
But businessman Doug Owens said he and others feared the company would turn the old-style wharf into a commercial clone of its other wharves at Paihia and Opua.
"There is a hard-core bunch of Russell people who are very concerned about what's happening here," he said.
"In effect, our wharf is being stolen from us. At the moment most people do not realise what is going on. Fortunately I do, and I'm taking a stand," Mr Owens said.
The majority of submitters to the Far North Council's long-term plan this month were in favour of transferring the wharf to Far North Holdings, which runs most of the council's other marine facilities.
But a Bay of Islands Swordfish Club member Nigel Zambucka said most people would not have been aware of the latest version of resource consents granted to Far North Holdings to change the wharf.
Mr Zambucka said the changes included a larger cafe with toilets; a sewage pump-out station; pontoons and large water tanks, all of which would change the look of the wharf and reduce public space.
"The first version of the resource consent said the changes should not alter the wharf's character, or turn it into a wharf/marina hybrid that would be at odds with the historic values of Russell," he said.
"But that's exactly what will happen if this goes ahead."
Far North Mayor John Carter said Russell people would be consulted on the wharf plans as they developed and it would remain a community asset.
"It's to be retained in council and community ownership; the community board is monitoring this to make sure we are all monitoring it to make sure we end up with the best outcome for Russell and our district," Mr Carter said.
But Doug Owens said the resource consents granted to Far North Holdings by the Northland Regional Council had not been publicly notified, and been quietly modified several times.
The Tauranga businessman and former Bay of Plenty Regional Council member said he was preparing to challenge the Russell wharf resource consents in the High Court.
"If we can get people back to the table maybe we can work out a solution.
"But somebody's tried to take advantage here I think, and it smacks of a set-up. I don't like that," Mr Owens said.
Far North Holdings chief executive Chris Galbraith said the company has no intention of spoiling the wharf.
"There's definitely a view that the wharf needs to remain much as it is and keep its wharf-y feel, if you like, and ... I'm sure those aspirations can be met.
The new cafe needed to be slightly bigger than the present kiosk, to make the business viable, but it would look very similar to the current building, he said.
The two toilets would be part of the cafe structure and the water tank to service them would be built into the cafe's walls.
There was no risk of a sewage spill from either that or the sewage pump-out station, Mr Galbraith said.
"It's a closed system.
"There's a much greater risk currently of boats discharging sewage into the bay," he said.
"They need a facility to remove this from the boats rather than dump it into the marine environment in the wider Bay of Islands."
MBIE said officials had yet to assess the business case for the wharf grant applied for by Far North Holdings Limited.
It confirmed that either the council or FNHL would have been eligible to apply.