The Queenstown Lakes District Council wants to alter the rural visitor zone rules so development on Mt Cardrona will not intrude so much into the landscape.
The station company directors Ross Hawkins, Andrew Spencer and Tony Fountain already have resource consent to develop the land up to 844 units.
They agree in principle with the zone change, even though it alters their development rights, because they believe it is what the community wants.
Several submitters are strongly opposed for a variety of reasons, including negative landscape effects, the size of the village, commercial precincts and integration with the existing village.
John Matthews, chairman of the commissioners' panel, questioned council planners thoroughly about opposing submitter Brooklynne Developments Ltd's evidence, presented on Wednesday.
That company, headed by developer Kathy Lynne, has several projects under way in the village, including a 58-bed backpackers hostel with cafe and shop.
Brooklynne's engineering consultant Michael Lee said on Wednesday the QLDC planning report showed a development of 1400 units could be created within the rural visitor zone (which amounts to about 15ha of Mt Cardrona Station land) but he could not find any supporting document to back up that claim.
Mr Lee had not been able to find any reasons why the council's urban design specialist was of the opinion there should be 1000 units "to create an integrated community or provide a critical mass".
By Mr Lee's calculations, the proposed development would be significantly larger than the approved development and the zone change was not environmentally justifiable.
Mt Cardrona Station's planning consultant Kobus Mentz said in rebuttal there could be a yield of 1169 units, if minimum lot size rules were applied, or 1000 units if the urban design test was applied.
Urban design consultant Rebecca Skidmore told Mr Matthews development yield was a "very fraught and fully discussed issue" and it was difficult to come up with a definitive number because there were several ways to do a development.
Yield was important but only one consideration, she said.
Planner Jenny Parker told the panel she did not agree with Brooklynne there should be one commercial precinct in the existing village because that would shut down any long-term opportunities for the new village.
It was clear there would be two settlements, each of which could be developed of their own right.
She agreed there was not a big demand for commercial activities but they could be staged.
Ms Parker advised Mt Cardrona Station zone change should not be deferred until such time as a zone change was considered for the existing village.
No submitter had requested a deferral, so it was outside the scope of the hearing, Ms Parker said.
Mr Matthews said Brooklynne's figures were "absolutely enormous".
Initially, he was not satisfied the panel could make a decision without more information, particularly because Brooklynne's yield figures had caught Mt Cardrona Station witnesses "on the hop".
He did not want to hear any more evidence on development yield from the council planners because submitters had not been able to consider it.
He would rather adjourn the hearing and reconvene later, if necessary, Mr Matthews said.
