The management of the Frankton Golf Course may be transferred to Lakes Leisure to operate as a six-hole course, with a possibility the council-controlled organisation will establish a redeveloped golf centre on the site.
There is also potential for another nine-hole course to be developed as part of the Queenstown Lakes District Council's next long-term plan process, to occur in 2015.
Council community services general manager Paul Wilson said in his report to the council, ahead of its full meeting in the resort on Tuesday, the Queenstown Golf Club's lease on the existing nine-hole course at Frankton would expire on June 30 and would not be renewed.
In March last year, the Queenstown Airport Corporation (QAC) indicated it would not require access to its land, used by the club, until about 2020. However, it would be seeking a "more commercial level of return" on the land in the interim.
In October, the council established a working group to investigate options for the club and the course. The group carried out extensive consultation with stakeholders, including Lakes Leisure, the airport, Sport Otago and Golf NZ, and identified two options for the continuation of golf at Frankton.
The first was to issue a new lease for the club, which would require the council to enter into a maximum five-year lease agreement and the club to negotiate and enter into a lease with the airport.
The other was for the council or Lakes Leisure to enter into a new lease with the airport for the balance of the land, on which six holes of the course were located.
Mr Wilson said that option had been agreed in principle and Lakes Leisure had considered feedback and consulted golf course experts to consider future uses for the site.
There was potential for integration into Lakes Leisure programmes, integrated marketing and enhanced levels of service, he said.
"It is intended Lakes Leisure would continue to operate the golf course on the same basis as it is run ... while they establish a better understanding of the financial implications before any redevelopment is contemplated."
A redevelopment would allow two new sports fields to be created, aiding Lakes Leisure's objective to provide more capacity for a wider range of sports activities at the site.
Following any redevelopment, the site would comprise a six-hole course, driving range and practice bunker/practice green areas.
There was also potential to enhance the facility by, for example, installing floodlighting at the driving range, improving turf management and making cosmetic improvements to the course layout.
Additionally, several parties had approached the council about providing an alternative nine-hole community course in the area.
The most likely locations were at Jacks Point, Remarkables Park or the proposed Shotover Country site.
The parties had expressed interest in providing a golf course through reserve land and contributions to improving reserve facilities, Mr Wilson said.
Mr Wilson recommended that the council approve acquiring the assets necessary for the continued operation of the course, "where is - as is"; ask Lakes Leisure to enter into a lease with QAC for the balance of the golf course land; and ask Lakes Leisure to operate the course until either competing uses required its relocation, or a business case was approved for redeveloping it and its facilities.
He also recommended that the council note the intention to include funding in the 2015 long-term plan for developing another nine-hole course, to be funded by development contributions.
Mr Wilson told the Otago Daily Times yesterday the recommendation appeared to be a good outcome for all parties, with the Queenstown Golf Club "supportive of the approach".
"The good news out of this is that we're trying to keep golf there and have some sporting use there as well.
"It's a good compromise."