Council chief executive Mike Theelen told a full council meeting this week he believed the $1.3million joint project with the Queenstown Airport Corporation was emblematic of a new approach to transport projects.
"We’ve often suffered in the past from every organisation in their own camp saying ‘not quite my responsibility’," Mr Theelen said.
"We need to push the boat out and this council has been championing that with Queenstown Airport Corporation, Otago Regional Council and NZ Transport Agency.
"This is a good example of that."
The park-and-ride, in Frankton, is a variation to the Eastern Access Road (EAR), formally known as Hawthorne Dr, which is under construction.
He was hopeful an NZTA subsidy on the EAR would fund some of the cost and there would be additional savings on the project itself, Mr Theelen said.
"But obviously, just for transparency sake we need to put up a budget for our contribution and have that agreed by council."
Mayor Jim Boult said in summary it was a "worst-case scenario".
"It’s going to hopefully be subject to reduction after some commercial negotiations with other parties," Mr Boult said.
While it would primarily provide parking for airport users, 150 parks would be used to offset the impact of removing parking spaces from Glenda Dr.
The first stage of the EAR, which is expected to open by winter, links Remarkables Park with Glenda Dr, around the back of the airport.
Parking spaces will be removed from Glenda Dr.
"Otherwise we’re just moving the traffic jam," Mr Boult said.
Mr Theelen’s report said with the park-and-ride facility it was also expected car parking along Kawarau Rd, on State Highway 6, "which continues to be a safety concern", could also be removed.
It was expected the facility would remain in place for 10 years to ensure the benefit of the investment was recognised for the community.
The EAR project was awarded to Fulton Hogan in October, for the tendered price of $21.8million. However, a report to the audit, risk and finance committee this week shows the contract value of the project is almost $22.8million.