The Southern District Health Board is seeking non-notified land use consent for extensions to the hospital building, in Douglas St, Frankton, located in the low-density residential zone.
The application said any actual or potential effects of the proposal would be less than minor.
"The proposal will allow for the extension of the existing Lakes District Hospital which will aid in providing further healthcare facilities for the local community.
"Any potential increase in the effects on the residential amenity of the surrounding low density residential zone will be less than minor and effects will largely be internalised on the site.''
A new 294sqm emergency department wing is proposed which would have a total of nine beds, including the seven existing beds and two resuscitation bays.
DHB chief executive Chris Fleming said the overall space would be "significantly larger'' than at present and would include a reception, large waiting area, triage and consultation areas, a medical students' training room, a plaster bay, decontamination area and an isolation room to treat patients who were possibly contagious.
A second 168.4sqm wing was proposed as a "District Nurses department building''.
A CT scanner and a clean utility room, which would include storage for pharmaceuticals, were also proposed in the new build.
Both new wings would be located away from residential properties and screened by the hospital buildings and landscaping.
"The proposed extensions have been designed ... with respect to the existing building and will be a continuation of the existing built form,'' the application said.
"The existing hedge along the eastern side of the site will aid in mitigating any actual or potential effect of the proposal.
"Overall, it is considered that the proposed additions and alterations to the existing hospital building will have a less than minor effect on the environment.''
While the proposed extension to the south would be located over an area used for staff parking, given the size of the parking area and availability of parking throughout the hospital grounds, that would have a "negligible effect'' on the parking availability throughout the site.
No changes were proposed to access points and the proposal would not result in manoeuvering areas associated with parking being compromised, the application said.
Mr Fleming said a pharmacy and store, "telehealth'' facilities and a dedicated paediatric and patient care room, including a whanau room, were proposed within the refurbishment of the hospital.
The DHB announced the proposed upgrade in August 2016 and at that time refurbishment of the maternity ward was mooted, but that does not appear to have been included.
In response to an Official Information Act request, Mr Fleming told the Otago Daily Times: "The priority of the refurbishment programme has been to focus on improvements to key areas to meet the growing demand for services, particularly the Emergency Department and the radiology services (e.g. with the advent of a CT machine).''
In October last year, DHB deputy commissioner Richard Thomson said he hoped building would begin in the second quarter of this year and would take about 18 months to complete.
However, at the end of January Mr Fleming told the ODT, subject to consent, he expected the project would be completed by next July.
