Three council-owned sites in Queenstown are being considered for the resort's proposed convention centre.
In a statement yesterday, Queenstown Lakes District Council chief executive Adam Feeley said the Lakeview site had already been identified as one with ''cost-effective potential'' because it was large and flat and had ''sensational locality''.
However, Mr Feeley said it was ''imperative to test options'' and sites at Stanley St and the Gorge Rd car park were also being considered.
Although the Lakeview site was a good fit in terms of the ability to leverage other commercial opportunities - key to the success of the centre - the potential of the other two sites needed to be understood more fully from economic benefit, financial and consenting perspectives, he said.
''In parallel with the preparation of information for consultation are the negotiations with both the funders and the proposed operator, SkyCity Entertainment Group.
''As I have previously stated, there are many strands to this.
''The investors need to know the project is financially viable; the operator needs to know it represents a good business opportunity; central and local government need to ensure that the scope of any contribution is both well-defined and capped, and that the process has been robust.''
The council's draft annual plan consultation requested general feedback on the concept. There were concerns from some Wanaka submitters the only impact for them would be ratepayers' money contributing to the centre.
Another concern relayed to the council was such centres were ''notoriously unprofitable'' and some submitters urged the council not to make any financial contribution towards a convention centre.
The council has announced SkyCity as the ''preferred operator'', which drew criticism from Julian Haworth, who wrote that its apparent ''devious dealings'' in back room deals with central government should exclude it from any community projects.
The issue also drew positive submissions, with the council receiving support for the centre, and to put forward ratepayers' money if necessary.
Sir Eion Edgar, who was on the committee which investigated the feasibility of the centre, said it was ''extremely important for the future of Queenstown''.
The council's draft annual plan, which was approved in April, said ''it is not the intention that council would be involved in either the ownership or operation of a convention centre''.
Funding is being still being investigated but in April, Prime Minister John Key said the Government might contribute some funding towards its estimated $50 million price tag.
Last week, Mr Feeley said feedback through the draft annual plan would help the council to ''formulate the formal consultation process''.