The proposed expansion of Kingston is bigger than the community wants and would put too much pressure on State Highway 6, according to the New Zealand Transport Agency.
Otago Southland planning manager Ian McCabe outlined the agency's concerns about the proposed plan change which would allow the expansion to a hearing in Queenstown yesterday.
The proposal to rezone 88ha of rural general land owned by Kingston Village Ltd for residential and commercial use is a joint venture between the developer and the Queenstown Lakes District Council.
Mr McCabe told the hearing the agency had concerns about the scale of the proposed plan change and its effect on the state highway.
He questioned the assumption Kingston's business and employment opportunities would grow significantly.
"Kingston would remain a satellite township for Queenstown, which seemed likely to continue to provide the greatest range of employment, retail, educational and social opportunities," he said.
He said it would be better to concentrate on expanding Queenstown and Frankton before providing significant urban growth in more remote areas.
The traffic demands on the highway would increase given that residents of Kingston would still be attracted to Queenstown and Frankton for social and economic activities.
"The land transport system will struggle to accommodate increasing demand, particularly where there might be limited opportunities to provide more road capacity and potential constraints on available funding."
Mr McCabe said the highway had the capacity for extra traffic but it would lead to increased risks in its overall safety and functionality.
The Kingston 2020 community plan promoted a far smaller area for expansion than the proposed plan change.
"If the nature and scale of the proposed plan change is to be realised to its full potential, it is hard to imagine the low-key character of Kingston will not have been significantly modified," he said.
Crs John Mann and Vanessa Van Uden adjourned yesterday's hearing for a supplementary council planner's report to be prepared.
Cr Mann told the Otago Daily Times the councillors would deliberate for about two weeks and their recommendation would be put to a full council meeting - probably in October - for ratification.
