The Queenstown Lakes District Council will today consider exchanging some freehold land for reserve land on the Lakeview site as part of proposed plan change 50.
At the monthly meeting, councillors will decide on a recommendation to appoint a hearings panel to hear public submissions on a swap of council-owned freehold land for an equal area of reserve land.
Strategic projects and support manager Paul Speedy said in a report for councillors the reallocation of land was required to realise the Lakeview site's development potential.
''The areas delineated in the land exchange plan are based on the optimum location of future buildings, roads and open space to manage environmental effects of activities on the site and to maximise its efficient use.''
Possible uses for the reserve land included a market square, a Ngai Tahu Tourism hot pools development, and securing sections of the Ben Lomond Reserve bike track at present on council freehold land.
Under plan change 50, 15ha of the resort could be rezoned, ushering in controversial new height limits for buildings and enabling a convention centre to be built.
Mr Speedy said the reserve land - now occupied by the Queenstown Lakeview Holiday Park and about 50 privately occupied or rented cabins - had to first be reclassified as recreation reserve to bring it in line with a 1977 legislative change.
The reclassification, which had not occurred because of an historical ''oversight'', had to be authorised by Minister of Conservation Nick Smith.
The proposed timetable for public consultation is for submissions to close on May 8 and a decision to be made by May 29.
