Omarama is to get more holiday accommodation to meet the growing demand in the Waitaki Valley township.
Sierra Motels has resource consent to more than double the size of the complex on State Highway 8 and hopes to have eight extra units ready for the coming summer season.
The motel's owners, the Ferguson Family Trust, applied to the Waitaki District Council late last year for resource consent to expand, saying the motels could not cope with the demand for accommodation during peak and holiday periods.
It was renting out houses in Omarama to meet the demand.
It wanted to expand to cope with the shortfall and provide quality accommodation for visitors to the Waitaki district and, in particular, Omarama.
The owner of the motels for the last three years, the trust will construct a block of eight motels and a separate manager's residence on the northeastern boundary of the 4050sq m site.
Cathy Ferguson hoped the new units would be ready for next season, although that depended on a number of factors.
The cost of the expansion has not been calculated yet.
At present, the motel has six units, a fishing shop and attached manager's residence in one block on the southwest side of the site.
The manager's unit would be converted into a large family unit or lodge and the shop shifted to the front of the residence.
The new single-story block would have eight units with 12 car parks and be constructed 3m from the boundary fence with The Wrinkly Rams complex within the 10m limit imposed by the district plan.
The council granted consent for the expansion after a hearing on November 28 last year, at which The Wrinkly Rams complex expressed concern about the effect it could have on its retail and restaurant business. Conditions in the consent were later appealed by the trust to the Environment Court.
The council and the trust reached agreement and the court issued a consent order on Tuesday.