A group calling itself the Friends of Beach Avenue has filed a civil suit in Kamloops Supreme Court against the District of Peachland and a Lower Mainland developer.
At issue is a proposed five-storey, mixed-use retail, commercial and residential complex at the corner of Beach Avenue and 4th Street in Peachland.
The group says the development contravenes Peachland's Official Community Plan, Neighbourhood Plan and Downtown Plan, which all state Beach Avenue development should be restricted to three storeys.
It's asking the courts to instruct the district and the developer to comply with the OCP.
Peachland council recently approved the development.
A spokesman for the developer says the project is "literally a turning point" for the future of Peachland's core commercial area.
It would include retail shops on the main floor, second-floor office space, with 10 to 12 large family units designed for "year-round living."
Randy Brophy, who moved to Peachland two years ago and built a home just blocks from the proposed development, says he feels betrayed by the municipality.
Brophy says he feels the community has not been heard in its opposition, saying a public hearing on the matter was held during the midst of this year's record flood, when people most affected were not able to attend, and a petition with more than 500 signatures was ignored.
He adds OCP documents dating back to 2002 and updated seven years ago, state Beach Avenue developments should be restricted to three storeys.
He says a lawyer who represented Penticton residents in their fight against a controversial Skaha Marina development agreed to take their case.