The wilderness area around Susies and Quarry lakes was designated as a municipal park. (CBC)

Environmentalists are afraid a wilderness area of Halifax, already designated a municipal park, will be turned into a housing development.

The land around Susies and Quarry lakes was designated municipal parkland by the Halifax Regional Municipality three years ago. The land is next to the Bayers Lake business park and the provincially designated wilderness area known as Blue Mountain-Birch Cove.

Chris Miller of the Canada Parks and Wilderness Society said he's been counting on the city to protect the land, part of which is privately owned.

"We're really concerned that they're backing away from their promise," he said. "It's been 3½ years now and the city hasn't purchased … one hectare of new land for this park."

The regional plan called for the purchase of privately held lands to create the park, but the landowners do not want to sell.

Instead, Annapolis Group Inc., Armco Capital Inc., Gateway Materials Ltd. and Sisters of Charity filed a development application in the summer, proposing to spend $2.5 billion to turn the area into a residential community.

The landowners want to build high- and medium-density housing as well as a business park and other commercial projects. About 80 per cent of their land would be developed, and the rest reserved for green space.

"The plan the way it's laid out now is quite attractive," said Coun. Peter Lund, who sits on a regional planning committee examining the application.

But even if the development doesn't go ahead, Lund said, the idea of the city buying up the land needed for the park is off the table.

"I don't believe that (the municipality) is going to be in a position to be able to purchase lands at the going market value rate because it's going to be prohibitively expensive," he said.

Municipality staff have recommended councillors put off a decision on the development for five years. Staff said in a report on the application that there is no need for the development, and there is ample land elsewhere for housing.

The landowners did not respond to requests for an interview.

Miller said he wants the city to stick to its original plan and create the park.

"What's at stake is the most important wilderness near Halifax," he said. "This is the most significant spot and the decisions that are being made right now will determine what this place looks like in 10 or 20 years."