The proposal has attracted 49 submissions - all of which were in support.
Jef Desbecker and Robina Bodle are behind the proposal which, if granted, would allow the property change from residential to mixed residential and commercial use.
It is proposed to demolish the existing residential unit at the site and construct a two-storey building comprising a child-care centre on the bottom floor and two residential apartments on the top floor.
A basement car-parking area is also proposed.
The child-care centre would cater for a maximum of 40 children and five staff, with proposed operating hours between 7.30am and 6pm, Monday to Friday.
An outdoor play area of about 200sq m was also proposed, with hours of use restricted to between 7.30am and 8am.
Land-use consent is also sought to undertake physical works associated with earthworks and vehicle access; permit internal and road-boundary setback and continuous-building length infringements; and to breach the nature and scale of activities permitted in the zone.
The initial application proposed office space on the top floor of the building, but Mr Desbecker and Ms Bodle replaced that with a proposal for residential apartments.
The applicants also moved the proposed play area to the back of the site and away from the residential neighbour at 5 Henry St.
The child-care centre would comprise indoor activity areas, sleeping areas, toilets, laundry, change facilities, office and staff facilities.
Noise-mitigation measures included a 1.8m-high noise-absorbent fence, which would be constructed around the perimeter of the outdoor play area, above the retaining wall on the northwest, northeast and southeast boundaries.
Noise-absorbent material would also be applied to the soffit of the outdoor play area overhang and the northwest wall of the outdoor play area.
The residential units would be about 124sq m and comprise two bedrooms each.
Each would have an external courtyard - located on the northwestern and southeastern facades.
Access to the units would be via an internal stairway in a road-frontage facade which could be accessed from the underground car park or from the street via an external stairway.
Lakes Environmental planner Quinn McIntyre recommended the application be granted consent as proposed.
The resource consent hearing will be held at the Crowne Plaza from 10am on April 2.
• Points from submissions
Of the 49 submissions received, 44 said Queenstown needed more child care, evident by long waiting lists.
Many people referred to the convenience of having a child-care facility, with convenient hours of operation, situated so close to the CBD when many families needed dual incomes because of the high cost of living.
There is a large car park (Gorge Rd) nearby.
It would be in keeping with other commercial activities nearby.
Being located within a residential setting would provide children with a sense of security.
The lack of child care in Queenstown is causing employers difficulties in securing and retaining staff.
Any noise would be insignificant compared with late night noise generated by Queenstown nightlife.
Land in the town centre zone is too expensive to make a child-care operation commercially viable, so locating one on the fringe of the CBD is a logical step.
At present, there is no provision for the council to develop these facilities, so it is left to the private sector.
The proposal would serve the surrounding residential neighbourhood.
It would bring "top educators" into Queenstown.
A new centre would provide a variety of options with differing philosophies.
It would be close to Plunket, playcentre and Queenstown Primary and Wakatipu High Schools.
