The Right Reverend Dr David Coles, who spoke on behalf of the Wakatipu Parish Vestry, was one of four submitters who voiced their concerns to the hearing board.
"The bylaw for this says you can have a brothel anywhere in the town centre," he told the Otago Daily Times after the meeting.
"They've still got planning restrictions, but we are making a point that they need to be able to exercise more control than that, and one of the reasons is the prospect of a red-light district - that you could have a whole street [of brothels] all within the CBD."
Other concerns he spoke of in the meeting included the potential impact of brothels on retail interests and property values in the town centre, and the close proximity of any brothels in the CBD to churches, youth facilities including schools, public parks and playgrounds.
"We are aware that in some cities, licenced brothels associate with gang members, the porn' industry, and drug-dealing, and I don't think it's good for our reputation."
He also cited research on post-legalisati-on prostitution in Australia, where illegal sex premises have reportedly "rocketed" four times compared with legal sex premises, and foreign women were being brought into the country as "migrant sex workers" .
He challenged council to review the bylaw, taking into account moral responsibility, not just legal planning matters.
"Council are concerned about a permit to open a brothel - this comes under the Prostitution Bill reform, but all these consequential issues that arise are one of our major concerns."
Also in opposition was Family First NZ national director Bob McCoskrie, of Auckland, who recommended council keep the existing bylaws.
"I know what prostitution's like.
"It just completely destroys the soul of the town."
Mr McCoskrie said the CBD was a family area, home to sensitive activities, but brothels should in no way be permitted to operate in residential areas.
Single Owner/Operator Brothels [SOOBS] could exist next door to a family home, and could have up to 11 prostitutes operating out of a house at different times, he said.
"We have dealt with family after family after family who have dealt with increased traffic, and dodgy persons knocking on their door for the brothel.
SOOBS are a nightmare and I would encourage you to follow the Christchurch bylaw and restrict it to a commercial area if possible."
A possibility he outlined was to situate brothels in industrial areas, like the situation in Hamilton, where community pressures have placed area restrictions on brothel operations.
" . . . there just has to be an area - it can be anywhere and it can be as small as you want, but it has to be an area.
"So what we're saying is that our concern is that the CBD area is right in the middle of the family, shopping, tourist, playing area, picnic spots etc ..."
Arrowtown and Sydney-based submitter and brothel bylaw specialist Joe Vescio agreed using an industrial area with less sensitive surrounding land uses would be appropriate.
"While it may be inconvenient for potential clients, I don't see why they can't simply drive or catch a cab."
He said issues of violence, safety, privacy of clients and liquor licensing also had to be addressed, and the whole bylaw should be redrafted.
"It really is seriously deficient and I am prepared to offer my services to help the council ..."
Queenstown resident Allan Lemm also opposed the bylaw.
