Councillors at the Queenstown Lakes District Council meeting this week voted in favour of the Three Parks plan change to rezone land for a secondary town centre in Wanaka.
QLDC commissioners Gillian Macleod, of Queenstown, and Leigh Overton, of Wanaka, have recommended the 100ha commercial, retail, and residential development be approved.
Their report recommends the land, to the southwest of Mt Iron and bounded by State Highway 84 - the main entrance to Wanaka, Ballantyne Rd, and Riverbank Rd be rezoned to allow for Three Parks.
Wanaka property developer Allan Dippie is behind the huge project.
His company Willowridge Developments plans to build the staged project during the next 10 to 20 years.
The commissioners recommended commercial development be scaled back and introduced in stages, subject to "health checks" on Wanaka's existing town centre.
Willowridge's original proposal had called for the plan change to provide 20.2ha of large-format retail stores, which the commissioners have reduced to 8.5ha.
A further 7.2ha has been set aside for expansion of the "commercial core" but can be developed only via another plan change.
The low density residential zone has also been increased from a proposed 32.2ha to 39ha, and protected to ensure only residential, education and daycare facilities can be built.
The plan change will now be notified, and if no appeals are made within 30 days, it will come into effect.