The Queenstown Lakes District Council strategy committee will decide at next Tuesday's meeting whether to adopt a plan change that would have the 120ha Shotover Country site, between the Shotover River and the Lake Hayes Estate development, changed from rural to a special zone, allowing housing and a small-scale convenience retail outlet.
Clarke Fortune McDonald principal Neil McDonald, a spokesman for the group behind the development, the Ladies Mile Partnership, was happy to see the proposal progressing.
Amendments to the plan sought by commissioners Leigh Overton, Mel Gazzard and Cath Gilmour included a small reduction in area of land considered at risk of flooding.
The commissioners also recommended another low-density area be rezoned medium density, with about 20 residential sites lost overall.
They also recommended a safeguard to ensure a proposed school and village green area did eventuate.
Once 450 lots had been given consent, the developer would be required to build roundabout access from State Highway 6.
Developers would also be required to gift 26 lots to the Queenstown Lakes Community Housing Trust for affordable housing, before any other residential activity could start.
Mr McDonald said the only "significant change" was the exclusion of the small area of land perceived to be at risk of flooding.
"The Ladies Mile Partnership are very pleased to see the commissioners have made a recommendation that the Shotover Country proposal be adopted, and we are looking forward to that happening at the meeting on the 11th."
The commissioners heard submissions on the proposal in the week starting March 7, and adjourned the hearing until June 16 to hear further evidence.
QLDC general manager policy and planning Philip Pannett said the council's guiding documents suggested the plan change was not necessary at the moment, but added commissioners had given weighting to future planning.
"The commissioners viewed the land in question as being possibly the last area in the Wakatipu basin of reasonable scale which broadly met the requirements for residential development."
They also considered there was an ability to provide "critical mass" for public transport, retail and education facilities in conjunction with Lake Hayes Estate.
"The benefits of the site, in the opinion of the commissioners, outweigh any potential adverse effects generated by the development," Mr Pannett said.
If adopted, the decision will be notified, subject to appeal to the Environment Court.