The Mackenzie District Council agreed in late April to put aside $160,000 (plus contingencies) to prepare a subdivision consent for a self-funding project that would sell debt-free land owned by the council.
After resource consent for the project was approved in December the council announced that two public workshops would be held to allow public input.
About 80 people attended the first forum on Wednesday, and workshop chairman Mackenzie District Councillor Murray Cox said feedback from the public was ''all very positive''.
''People participated in the workshop and we got all the comments and things they thought were missing, so it was good.''
Mr Cox said the most popular issues raised concerned public amenities.
''One of the things that people have pulled up is that we were going to initiate a parking review, that we have catered for enough people to park around town, and how the traffic flows, so there were things around that.''
He said it was also important the landscaping and ''feel'' of the new development flowed through into the old one.
''People certainly thought that the development should go ahead. They want to see development there. There are quite a few people looking for new space, either office or retail.
''We did put up a concepts plan as to whether the council should carry out some of the development itself to get it started and put it in a style that reflects Tekapo. There was pretty general agreement that the council should do that as long as it's done right.
''There were varying views on the look of a new development in terms of the design, so that's something we will work through over the next while ... Obviously we don't want the design to be obstructive to the shops that are already there.''
A second public workshop will be held on Saturday, January 25.