Independent commissioners David Clarke and Sally Middleton last month approved a subdivision, boundary adjustment and land-use consent application to enable a community hall to be built next to St Andrew's Church in Tenby St.
The application by the Otago Foundation Trust Board was made on a limited notification basis and heard in February.
The church has already received a $300,000 grant from the Presbyterian Synod of Otago and Southland, and will sell the St David's Church at Luggate and its Tenby St hall to help finance the project.
The present hall is on the opposite side of Tenby St to the church. The manse and space for a car park will be retained.
The new community hall will contain a kitchen, children's area, parenting room, Sunday school rooms, office space and an upstairs space for gatherings.
St Andrew's Church was opened in 1989. The architect, Ken Warburton, was re-engaged to design the extensions.
The original Presbyterian church was sold in 1988 to the Anglicans and moved to Upton St, where it is now part of St Columba's Church.