Hotel tycoon Jerry Schwartz says he is prepared to take legal action to keep his unauthorised slippery dip at Rydges if City of Newcastle refuses his development application.
Dr Schwartz is already in the midst of a Land and Environment Court battle with the council over his bid to install a carousel he said cost him $20,000 to import.
Following the argy-bargy over the carousel, City of Newcastle handed Dr Schwartz a development control order for his unapproved miniature train, which has since been relocated, and the waterslide, which has been a feature of the hotel in recent years.
"It's vindictive," Dr Schwartz said.
"It's [the slide] been there for three years, and they never complained about it, but then they decided to take issue when I started answering back about the fact that they didn't want to have a carousel."
The development control order required the items to be removed within 30 days.
It is not the first time Dr Schwartz and City of Newcastle have locked horns, with the two most notably at war over the restoration of Newcastle Post Office, which Dr Schwartz owns.
A City of Newcastle spokesman said the non-compliant mechanical train, train shelter and waterslide were identified during the carousel development application assessment and preparations for the legal appeal in court.
"We wish Mr Schwartz cared as much about the former Newcastle Post Office as he does about his private water slide that was installed without a DA," the spokesman said.
"It's worth noting we are not the only NSW council that has objected to Mr Schwartz' cowboy approach to development.
"Hopefully we don't end up in court, but threatening council or running PR through the media won't change our approach to ensuring the same rules are applied to everyone, regardless of wealth."
The spokesman said the train shelter and waterslide were found to have been installed at the premises without development consent.
"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," he said.
In response, Dr Schwartz lodged a Building Information Certificate (BIC) and $62,365 development application to repaint the 6.1-metre-high slide an 'earthy red' colour, additional structural support and landscaping.
The BIC, used when a structure is built without prior council approval or a construction certificate, has been refused.
The council spokesman said the BIC was refused due to a range of safety and structural compliance issues.
Among the council's reasons for refusal were the stairs were considered "unsafe," the barrier at the top is not high enough to stop people from falling and, Dr Schwartz said, the council thought the slide is "too slippery".
"In addition to all the little pedantic things about the heights and stairs and all that sort of thing, they stated that visually it's no good," Dr Schwartz said.
"Of course I'm going to fight for this slide.
"If it can't be resolved in the Land and Environment Court discussion with the carousel, then I'll have to pay a lot of extra money to make a separate submission, and that's going to cost council money too."
All up, Dr Schwartz estimates that between the carousel and the slide, the saga has cost him about $100,000.