Three restored historic cottages could soon become a heritage precinct if the Arrowtown Trust is granted resource consent.
The trust has applied to the Queenstown Lakes District Council for Romans cottage to be operated as a cafe and art gallery and for Adams cottage to be used as office space.
It is also seeking consent for landscaping Romans, Adams and Granny Jones cottages and for the garden space to be used as an outdoor area for the cafe and for small-scale market days.
Lakes Environmental planner Wendy Rolls recommended the application be granted with 13 conditions.
Since 2008, the trust has raised almost $600,000 from the Lotteries Grants Board and community trusts for the extensive restoration of the late 19th-century cottages.
At a hearing on Thursday, planner Gemma Pemberton-Smith gave evidence on behalf of the trust.
She said the cottages had already been restored and their historic values retained.
The trust wanted the cottages to be mixed-use with suitable tenants so they could be maintained for future generations.
She said the buildings had a history of mixed residential and commercial use.
The trust accepted the conditions, with minor alterations, and any adverse effects such as noise and increased traffic could be mitigated and controlled.
Three submissions were received in support of the application and one neutral one from resident Karen Swaine.
Ms Swaine told the hearing she was concerned about the increased traffic on Romans Lane.
She, along with Poplar Lodge owner Adin May, called for the lane to be closed to traffic, particularly delivery vehicles servicing the proposed cafe.
Commissioners Christine Kelly and Andrew Henderson reserved their decision for 15 days.
• The Arrowtown Trust is an incorporated society. The trustees are appointed by the Queenstown Lakes District Council.