Two residential units can be built on land designated for a hotel intended to replace the old Lowburn Hotel. The hotel was demolished when Lake Dunstan was formed.
Waterline Lowburn Ltd, which owns the land, already has consent to build and operate a restaurant and bar, and to build apartments, but those consents have not been exercised and would lapse later this year.
It applied to the Central Otago District Council for land use consent for two building platforms that breached certain planning rules - dwelling separation, minimum yard, maximum height and protruding on to a skyline.
The council received four submissions on the issue, three in opposition and one neutral.
At a hearing last month, Paterson Pitts director Peter Dymock, speaking on behalf of the applicant, said the opposing submitters appeared to be ''under the mistaken impression that these sites are zoned only for a hotel and travellers accommodation''.
He said the zoning of the site was rural residential meaning there was no ''compulsion'' for the owner to proceed with the hotel or accommodation.
One of the opposing submitters, the Lowburn Action Group, was represented by Martin Anderson, who said the proposed residential sites would detract from the amenity values of the Lowburn inlet and there was an ''understanding'' the site was zoned for a replacement of the Lowburn Hotel.
The council hearings panel granted consent subject to 18 conditions which restricted height and size of any dwellings to the greater of 204.6m above sea level or 7.5m above ground level and 40% of the site.
Conditions included access be from Lowburn Valley Rd; the existing access be upgraded and specifics concerning water.
