Residents are taking their council to court over an ‘abstract’ $50 million luxury hotel proposal.

The $50 million Oscar luxury hotel is set to be built near a winery in the Seppeltsfield area of South Australia. Plans say it will feature 71 rooms with private balconies, a sky bar and an infinity pool.

The proposed 12-storey development is currently before Light Regional Council's assessment panel, but locals say it will dominate their low-lying landscape.

“The largest building in the Barossa is only about two-storeys high, maybe three at the most, and this is an almost 51-metre building that would sit very, very high in the landscape,” a local woman told reporters this week.

“For us, the reflective materials are a big concern and the design is very abstract.”

When Light Regional Council received the proposal for the hotel in February, it categorised the project as “tourist accommodation”, which means that only neighbouring properties have to be consulted.

However, many locals want the proposal placed in a different development category, so that  consultation is expanded to more members of the public and those significantly affected.

Two neighbours have applied to the Environment, Resources and Development (ERD) Court for a review of the development's categorisation.

The development application has been put aside until the ERD Court make a decision, but developers could still apply to have the Council continue to consider the application while the matter is in court.

The council cannot investigate alternative designs for the building, and must assess the development plans as they are submitted.