Variation 9, notified publicly in September 2007, would have provided for the revitalisation of the harbour area by ensuring activities and development were managed to retain its heritage, nature conservation and amenity values, keeping the harbour as a working port, and maintaining public access.
However, the harbourside committee has now recommended the council withdraw the variation, which still has to be confirmed by the strategy committee at its meeting on October 20, and by the council on November 3.
Harbourside committee chairman Gary Kircher said yesterday "things had moved on" since the council first mooted the variation.
"One of the important things is the council now directly controls most of the land in the area, including the former railways goods yard."
Land in private ownership had been, or was in the process of being, redeveloped - the Portside restaurant, the two wool sheds which had resource consents for redevelopment as apartments, and the McKeown Group Ltd depot.
Mr Kircher said the council had the Harbourside development plan, and submissions which had been made on the variation had been taken into account.
Continuing with the variation could have cost up to $80,000.
There were also other protections over the area, including New Zealand Historic Places Trust designations.
The council's planning department had been asked to prepare a report comparing the Historic Places Trust's listings in the harbour area with other heritage items.
Mr Kircher said the council had worked closely with the trust to ensure what was required to make the harbour a diverse and vibrant area for the community and visitors.
Heritage items in the harbour area had been listed in the district plan.
Others had been noted for future listing.
A report to the committee said enhancing the harbour area now did not warrant a plan change.
Any proposed building or new activity not permitted as of right could be processed under the resource consents procedure.
The council now owned most of the land in the area, and could control how it was used and developed.