The combined worship centre, offices, family store, and food bank will form a community hub that has been in the works for two decades.
The centre will be located on Pin Oak Ave, south of Wakatipu High School.
Local Salvation Army lieutenant Andrew Green said they hoped the larger space would allow them to grow both their worship community and support services.
The building will be two storeys, with a view to other social agencies occupying space on the second floor.
The idea was first raised about 20 years ago.
"It's been slow moving," Mr Green said.
It comes amid a rise in demand for social services, particularly around mental health and isolation.
"Queenstown's a very transient community," he said.
Remarkables Park made sense as a location from a logistical point of view.
"It's almost the centre of the Wakatipu area. We want a really good space that's accessible to as many people as possible."
Mountain Scene revealed last November that the Salvation Army was leaving its current Camp St premises, because, Mr Green said, they were starting to outgrow it.
On a 190sqm land parcel, the building was built in 1991 and converted for use by the Salvation Army.
Mr Green was not sure when the move would be made.
He said they would also be keeping their Gorge Rd site.
The cost of the building project would be funded internally, and not from any public campaigns, he said.
