Amended parking restrictions for Church St and Searle Ln in Queenstown will be be open to public consultation.
The Queenstown Lakes District Council's utilities committee approved the consultation process at its meeting this week.
The council's infrastructure project manager, Lane Vermaas, told the committee uneven subsidence in both the Church St roading and footpath pavements had threatened the safety of pedestrians and hindered smooth traffic movements for some time.
The road was undergoing an upgrade and this meant parking spaces had to be moved and reduced.
Parking on the street would still be predominantly 30 minutes, Monday to Friday, between 8am and 6pm, he said.
The number of P30 spaces would be reduced from 56 to 52 and mobility spaces would be reduced from four to two.
There were some issues with loading zones and coach stops, which would be addressed during the consultation period, Mr Vermaas said.
The council also had an informal arrangement to set aside parking for the St Peters Church congregation on Sunday mornings.
The consultation process will include a provision for the temporary closure of two parking spaces in front of St Peters Church area to allow for vehicles offloading goods at the Saturday morning Fresh Produce Market.
Mr Vermaas said Searle Ln was open to all types of public vehicles and was dangerous for pedestrians.
"It is proposed to improve the safety to pedestrians and the ambience of the lane by restricting access to delivery vehicles only between set time limits, with no vehicle access except for emergency vehicles at all times," he said.
One-way access to goods vehicles would be limited to between 5am and noon, Mr Vermaas said.
"This would allow the provision for the lane area to become a food and beverage area from noon to 5am, with tables and chairs set out in the area for the customers," he said.
Informal consultations with business people had indicated a desire for a bus stop on Church St and supported Searle Ln being a food and beverage area between noon and 5am, he said.
A date had not yet been set for the three-week consultation period.
A panel of Crs Gillian Macleod, Mel Gazzard and Lex Perkins would hear submissions and present a recommendation to the council's June meeting, he said.