Council chief executive Mike Theelen said the council had funded the purchase of 516 Frankton-Ladies Mile Highway, a 14.6ha site, through loan funding.
Elected members approved the terms of agreement to complete the purchase during a public excluded session at the full council meeting on April 18.
The council announced in February it had entered into a conditional contract to buy land from the Walker family.
According to the council's rating information, the land was valued at $3.6million and the improvements - including a five-bedroom, 440sqm copper-roofed house, 320sqm of vehicle/aircraft garaging and an in-ground swimming pool - at $2.81million, adding up to a capital value of $6.41million.
The final use of the property was to be determined but Queenstown Lakes Mayor Jim Boult said potential future uses of the land could include community facilities, such as sports fields and open parks, partial use for a transport hub or park-and-ride facility.
It also had potential for education purposes, for example, a new primary or high school.
"As the largest population centre in the wider Wakatipu, the need for some form of community and recreation hub in the Lake Hayes Estate/Shotover Country area is obvious.
"Opportunities like this to purchase large areas of flat land are rare and this 14ha site has the potential to offer a number of valuable community uses,'' Mr Boult said.
