Hotel mogul Jerry Schwartz will take his campaign to install a carousel in the grounds of Rydges Hotel Newcastle to the Land and Environment Court.
It follows an unsuccessful court-ordered attempt to mediate a solution with the City of Newcastle.
The council has since slapped Dr Schwartz with a development control order for an unapproved miniature train and waterslide that have been features of the hotel in recent years.
The order requires the items to be removed within 30 days.
The court will hear Dr Schwartz's case to install the seven-metre-wide by 6.5-metre tall carousel on July 2-3.
The council has twice refused the plans due to concerns about urban design, built form, character, visual amenity and heritage.
Dr Schwartz argues the amusement ride, that would be located on the hotel's property, would have minimal impact on the surrounding foreshore.
"You can see from the fly-through renders that I had made that it is hardly visible from the public walkway," Dr Schwartz said.
City of Newcastle said it identified the existence of the non-compliant Wattman Train (an electric trackless train), train shelter and waterslide during its assessment of the carousel development application and preparations for the Land and Environment Court appeal.
"The train shelter and waterslide were found to have been installed at the premises without development consent," a council spokesman said.
"We also identified the mechanical train was being used to transport hotel patrons on council-owned land adjoining the hotel, including public footpaths, without consent."
"Following a thorough investigation into the matter, a development control order has been issued for their safe removal."
Dr Schwartz labelled the move as vindictive and motivated by his refusal to drop his carousel campaign.
"I think it's really petty that the council keeps pushing me to start work on the (former Newcastle) post office. All the while we have this Land and Environment Court case going on in the background. Now they are hitting me with stop notices for the train and waterslide," he said.
"We had to have an agreement with the Hunter Central Coast Development Corporation to use the train on the promenade. It was meant to be renewed yearly but it wasn't. It hasn't been a problem until now."
The Wattman train has since been removed and will be relocated to another of Dr Schwartz's hotels.
Dr Schwartz insists the waterslide cannot be removed but has offered to repaint in a colour that is more consistent with the council's heritage colour scheme.
An urgent development application is also being prepared. If rejected, the application may also end up in court.
The council spokesman said the proposed carousel was refused due to its visual impact and inconsistency with the character of the foreshore.
"The form, scale, and appearance of the proposed carousel were considered to not be sympathetic to the setting and would detract from the qualities of the natural and built environment while offering no public benefit."
