Developers Silverlight Studios Ltd were given the green light for the project in December 2021 under Covid "fast-track" legislation.
Its consent to construct and operate a "comprehensive film park" on 55ha of rural land between Wanaka and Luggate contained a clause requiring the project to be "given effect" by January 21 next year or it would lapse.
However, earlier this month the Queenstown Lakes District Council granted Silverlight a five-year extension, to March 14, 2029.
An extension to the same date was also granted for its consent to build worker accommodation.
Asked what "giving effect" meant, council spokesman Sam White said this week there was not one clear definition.
"Its meaning has been established through various Environment Court case law over the last 30 years.
"It depends on what each application required consent for and how much has been implemented.
"It has to be assessed application by application."
Granting the extension, council resource consents manager Fiona Blight said Silverlight had demonstrated that "substantial progress" had been made and continued to be made towards "giving effect to the consent".
It had entered into an agreement with the landowner, SIO No12 Ltd, to secure ownership of the site; architects had completed the detailed design of sound stage buildings and Italian and seaside villages; detailed design work for bulk earthworks had been undertaken; marketing to investors had been carried out; it was working with the government to market New Zealand as a film-making destination; it had worked with consultants to prepare detailed costings; and there had been early discussions with construction companies.
It had also been granted consent for a temporary film-making operation while the main project was being developed.
For Silverlight, planner Scott Edgar submitted the council needed to consider whether or not "substantial" progress had been achieved.
"This does not necessarily require physical works to be carried out."
Given the scale of the project, it was "unsurprising" physical works had not begun, he said.
"The main obstacle has been unforeseen uncertainty around securing funding for what is a substantial and ambitious project."
The uncertainty arose from the global economic situation, the government’s review of screen tax incentives and the strike by the Writers Guild of America.
The review had been resolved, the strike was likely to be resolved soon and economic uncertainty appeared to be "stabilising", Mr Edgar said.
Silverlight is 51% owned by Mike Wallis, who said on Thursday external factors had caused delays but progress on Silverlight Studios was strong.
"We are very pleased to have the extension to the consents which provides the flexibility required for a project of this scale."
The film park would include 12 sound stage buildings, sets representing Venice, Paris and New York, visitor parking for 518 vehicles, parking for 1545 cast and crew parks, 126 parks for golf carts and a green screen 19.6m high and 225m long.
The Otago Daily Times has previously reported construction would create 4134 jobs in its first year and a timeline had the first four studios operating late next year.
