Fulton Hogan had applied to the Central Otago District Council for a district plan change to develop its Parkburn quarry, on State Highway6 between Cromwell and Queensbury.
The quarry is coming to the end of its life and the company plans to convert it into a residential development, along with business and industrial sectors.
The 118ha site would have 91ha for residential development, 3ha for business/retail and 24ha for industrial development.
There would be a limit of 543 residential allotments.
The plan change was publicly notified last year and submissions were called for.
A hearing is now planned in Cromwell, February 12-13, chaired by independent commissioner Gary Rae.
Council consultant planner Liz White, in her section 42a report for the hearing, recommended the plan change be approved, subject to amendments.
Both the Ministry of Education and Waka Kotahi NZ Transport Agency had raised concerns about the proposal.
The increase in population with the Parkburn development had not been catered for in the growth of school pupil numbers and Waka Kotahi had concerns about traffic flows and an increase in private vehicle use.
The development was about 10km from Cromwell and there was no public transport available.
That would lead to an increase in greenhouse gases.
Christchurch International Airport Ltd, proposing to build an airport in Tarras, has supported the plan change.
In her report, Ms White said the national policy statement on urban development clearly required the council to provide for growth.
She said increased pressure on school roles in the Cromwell ward would arise regardless of whether this particular parcel of land was rezoned or not.
Impacts on transport could be identified and the management of these effects would be more appropriately addressed, in detail, at the time of subdivision.
The development of the site could provide a suitable safe, efficient and connected transport network.
She proposed, to address the impacts of the increased traffic from the site on the wider network, that only 50% of the site be developed prior to the upgrade of the SH6/SH8B intersection.
So only 271 residential allotments would be allowed initially.
Significant safety concerns in relation to SH6 did not arise from the PC21 development, but a lower speed limit should be investigated, she said.
The argument a precedent would be set by allowing the development was dismissed as there had already been houses adjoining the lake.
"In this instance, the development adjoins, and will extend an existing area of urban development, rather than establishing a new area", she said in the report.
The development of the site would have a heavy reliance on private vehicle use.
This was the same throughout the district, given the lack of public transport.
But the site was highly accessible from SH6 and a cycle trail alongside Lake Dunstan.
There was a desire under other council plans to have intensive residential developments in walking distance to to the main commercial area in Cromwell.
But there was an under-supply of suitable land for this immediately around Cromwell.
The generally accessible nature of the proposed development, its reasonably close proximity to Cromwell and the fact that it resulted in an expansion to an existing settlement which would retain a compact and legible urban form, weighed in its favour, Ms White said.
— Staff reporter
