Queenstown Lakes District Council members were asked to give council staff the go ahead to consult the public on a land strategy for the Stanley St site, and to appoint a panel to hear submissions.
It would also allow for submissions to be made on the proposed joint ownership with Ngai Tahu Property Ltd of a civic administration building on the site.
Chief executive Mike Theelen pointed out the council was not being asked to decide on proceeding with the project but consulting on the process to "bring together" various pieces of land.
It would also enable consideration of how the project might be financed.
"This needs to be seen as two steps in the process towards being in a position to make any investment at the time when it is suitable."
Cr Niki Gladding moved an amendment calling for the matter to lie on the table until a proposed public consultation document had a "do nothing" option added and councillors had a chance to workshop the matter.
She wanted the public to be aware it had more options than those being offered in the consultation document.
Her motion was narrowly defeated but not before there was considerable discussion among councillors, some of whom could remember the project being considered as far back as 12 years ago.
There was a question over whether Stanley St rather than Frankton was the best location. However, Mayor Glyn Lewers said he clearly remembered a council decision favouring Stanley St.
Cr Lyal Cocks questioned whether the timing for consultation was right because of the cost of living issue and suggested it might be better done in a few months.
As well as the civic administration building, the Manawa precinct would include a performing arts centre, gallery and library and commercial properties.
A memo to the meeting from Price Waterhouse Cooper adviser John Schellekens noted the focus of work to date had been on the civic building, which was proposed as the first development on the site and delivered as a joint venture between the council and Ngai Tahu.
"It is important to note that while there have been commercial discussions with Ngai Tahu Property Stanley St the commercial arrangements are not finalised and are still subject to negotiation."
Some of the land for the precinct is owned by the council while Ngai Tahu owns some parts and has right of first refusal over other parts.
The memo noted the council was unable to "fully unlock" the site constraints to work alone on the project or with any party other than Ngai Tahu.
Mr Schellekens said Ngai Tahu was "likely" to be appointed development manager on the council’s behalf.
"Ngai Tahu is an experienced developer and [the council] can benefit from its development expertise, to manage project risk."
