The Central Otago District Council (CODC) voted last week to return an area of Crown land, managed by the council and being sought for Leaning Rock Village Trust's retirement village, to the Crown.
The Crown will offer it to Ngai Tahu, and Leaning Rock will then continue its negotiations with Ngai Tahu, in a bid to secure the land.
The land is on the outskirts of Alexandra to the east of State Highway 8, beside the Molyneux Estate subdivision.
Leaning Rock chairman Russell Checketts said he was pleased the hurdle had been cleared but it was frustrating and disappointing processes were taking so long.
He hoped negotiations with Ngai Tahu would be as quick as possible, and a purchase agreed by November.
It would then take another year to secure funding for land purchase and construction.
Leaning Rock is also seeking another parcel of council freehold land for its proposal and has until November to confirm its interest in the land.
Mr Checketts said if the Ngai Tahu negotiations were not finalised by then, Leaning Rock would seek a further extension from council, asking it to agree not to consider other development interests in the land.
The retirement village would be a not-for-profit lifestyle village of two- and three-bedroom villas, one-bedroom apartments and a residential care facility.
Mr Checketts said Leaning Rock was negotiating with an aged-care provider as a partner for the retirement village proposal, and Ngai Tahu had also signalled it would be interested in some sort of joint venture.
