A resource consent has been granted by the Dunedin City Council for the development in Brighton.
The applicant GK Accommodation Ltd had proposed 46 units be allowed, but a series of changes was made to the proposal before the land-use consent decision was issued.
Concerns had been expressed in the coastal settlement about how well the development in Brighton Rd might gel with the community.
They were largely allayed through the hearings process.
Council planner Jane O'Dea had recommended consent be declined and, though she welcomed changes to what was envisaged, she had remained concerned about the quality of communal outdoor space.
The resource consent would lapse after 12 years.
Hearings committee chairwoman Christine Garey said the panel was encouraged by the willingness of the applicant to listen to submitters' concerns and make changes while still delivering an important project for the city.
“We recognise this represents an unusual form of residential development for Dunedin, but also how important it is to provide temporary accommodation for the large number of workers coming to our city to help build the new Dunedin Hospital," Cr Garey said.
“We’d also like to thank submitters for the high quality of their submissions.
“Ultimately, the project represents a good reuse of the site, and a great outcome for everyone involved.”
Any appeal of the decision to the Environment Court would need to be lodged within 14 working days.
