The four-storey block, sandwiched between Church St and Searle Lane, is being developed by a consortium of four Queenstown developers and investors headed by John Guthrie and John Martin, plus the GW Property Group from Sydney.
Mr Guthrie said he was "in the throes of negotiations" with the Queenstown Lakes District Council and a "reasonable number" of potential tenants.
"We don't have a fixed tenancy plan.
"We have a very open mind. [Searle Lane developments] are going to depend on what tenants we get in and what their requirements are."
When asked if he envisioned Searle Lane becoming a hub of cafes, restaurants, entertainment and nightlife, Mr Guthrie said: "We'd like to think that would be the case.
"The lane needs revitalising. It's a little more intimate than Beach St and the mall and it's got great potential."
Mr Guthrie said he wanted to make Searle Lane pedestrian-friendly and not just a thoroughfare for taxis.
He said he had no comment on where the cab feeder lane went once Searle Lane was completed - "That's council's prerogative."
Queenstown landscape architect Paddy Baxter, of Baxter Design Group, said the Searle Lane side of the so-far unnamed block would complement the existing strip of bars, cafes and the cinema entrance.
He said he was looking to create a "vibrant little city lane".
"People enjoy the discovery of Queenstown's streets and lanes and Searle Lane's revitalisation is a wonderful opportunity for that.
"There's no room for trees so lights and signage are what we're looking at.
"It's about paving so it's reads as a pedestrian space, not just a service lane, and flows between Church St and the mall. [And[ in-lane lighting so the lane twinkles."
Mr Baxter said the taxi feeder lane was part of his concept.
It was not being closed off, but "its viability is not something we've been asked to consider".
