Independent commissioner Denis Nugent, of Wanaka, has released his interim decision on the Central Otago District Council's application to itself for consent to build a visitor and information centre between Murray Tce and State Highway 8B.
Overall, the application was considered a non-complying activity, Mr Nugent said.
It breached the minimum floor area for the business zone, the maximum building height allowed, and the total area of signs allowed per site.
He has sought more information on several matters, but signalled he would grant consent if satisfied with those reports and an appropriate set of conditions.
The application drew eight submissions, three in support, three opposed and two neutral.
The centre will replace the existing one in the mall and the council has budgeted $1.3 million for the project in the coming year.
BTW South applied for consent on behalf of the council.
The company's planning manager, Anita Dawe, told the hearing earlier this month the building would cover some of the car park by the Big Fruit sculpture.
The car park was usually empty, she said.
Mr Nugent has asked for "something more substantial" than anecdotal comments on the effect of reducing the number of car parks and on "reallocating" the remaining spaces in that car park to users of the new visitor centre.
Submitter Gary Anderson, of Cromwell, raised concerns about traffic safety on State Highway 8B, saying motorists would "pull in" off the highway on to the layby near the Big Fruit and walk from there to the information centre.
If vehicles were stopping in the layby to visit the sculpture, adding another attraction such as the visitor centre could increase the number of vehicles stopping, Mr Nugent said.
"I would expect the applicant to propose a strategy for discouraging people to stop in the layby and encouraging them to turn off SH8B to access the parking from Murray Tce," he said.
Prompted by submitters' concerns, he has also sought more information on how the new building will be linked to the town's business area.
Submitters and the council will have a chance to comment on the additional reports sought by Mr Nugent.