No. 1 Hansen Road Limited applied for resource consent under the Covid-19 Recovery (Fast-track Consenting) Act 2020.
The project initially proposed constructing seven to eight buildings with a total of 554 units to be used as temporary accommodation for the local workforce, and an independent panel approved a modified version of the original proposal yesterday.
It is proposed to house about 700 people.
The Queenstown Airport Corporation (QAC) opposed the original proposal, saying it was in the wrong location for such a development.
QAC general manager for property and planning Rachel Tregidga said yesterday it recognised it was important to address the shortage of worker accommodation in the district, "so it is pleasing to see developers exploring opportunities".
"Our concern about this proposed development is its location within the airport air noise boundaries. Constructing intensive accommodation so close to the airport will result in significantly more people being exposed to noise they could find intrusive."
The fast-track consent panel also expressed concerns it could limit the views of an outstanding natural landscape, but after No.1 Hansen Road Ltd reduced the proposed height of the buildings by one storey and the number of rooms to 476 (but intending to house the same number of people), the proposal got over the line.
"The reduced heights, along with the other proposed conditions, bring the extent of adverse effects within a level of change the panel considers is appropriate," the panel said.
"The nature of the proposal will also create wider economic benefits and assist prosperity of local business though the direct provision of workers’ accommodation, where there is presently a significant shortage in housing and accommodation to meet this need.
"Overall, the panel finds that the consents as granted would better enable the local community of Frankton, and wider Queenstown, to provide for their social, cultural and economic wellbeing and for their health and safety while ensuring that the effects of the proposal itself are appropriately avoided, remedied, or mitigated."
The panel also considered the provision of accommodation of this nature "may also contribute to a more equitable economy, by freeing up other housing for permanent residents".
The company has said the project could meet more than 10% of the expected increase in rental accommodation demand over the next 10 years, and reduce pressure on the housing crisis.
It is subject to a wide range of conditions, including: "no residential unit used for worker accommodation shall be used for visitor accommodation or residential visitor accommodation", and "the residential units used for worker accommodation shall not be subdivided into individual units or otherwise made available for individual ownership or sale".
No. 1 Hansen Rd Limited has been approached for comment.
The decision comes 130 working days after the application was lodged with the Environmental Protection Authority.
