The Queenstown Lakes District Council's senior policy analyst Ralph Henderson said that was among a number of issues identified in the survey of businesses in Wanaka, Glenda Dr and Gorge Rd industrial areas.
A lack of car parking, loading zones and too much residential accommodation were also causing problems.
The survey respondents thought building height limits were restrictive.
A limit of 6m in the industrial zone and 7m in the business zone were thought to be too low and resource consent applications were often made and granted for breaches.
The relatively cheap land in industrial zones made them attractive locations for activities not intended in these areas. Applications had been made for activities including visitor accommodation and children's playground.
A total of 220 survey forms were sent to businesses and 112 responses were received, Mr Henderson said.
Only one response was received from the Arrowtown industrial zone, which greatly skewed responses from this area.
The majority of respondents (81%) agreed with a component of retail being provided for in these zones.
Some said retail should be related to industrial businesses and had concerns about parking. Responses indicated inadequate parking and loading was an issue in most zones but particularly in Glenda Dr.
"Parking and loading issues were identified as being contributed to by allowing units to be used as accommodation, small lot size, staff parking and retail, automotive servicing and rental car agencies occupying street areas," he said.
One respondent said: "My customers often have nowhere to park because staff from other local businesses use all the parks for all-day parking. Very frustrating for me and my customers. I lose business because of it."
Responses to whether there should be provision for residential activity within these zones were very mixed, he said.
Some said it should be limited in scale and just be for staff or security. Others said the council should provide more green space and footpaths and allow a child-care facility to accommodate those living in the area.
Ten out of 37 respondents in the Glenda Dr area identified the lack of footpaths as an issue because visitors and employees were forced to park some distance away and walk along the road.
Others said trucks were forced to load in the middle of the road.
Some respondents were concerned about children walking along the road to the school bus pickup point because of the lack of footpaths.
"The school bus visiting the site to pick up children is completely unsafe with heavy traffic and numerous blind spots," one said.
The recycling centre at Glenda Dr was causing concern due to litter, and general dominance of the street with parking and loading was an issue.
Mr Henderson said industrial land was a scare resource that should be protected.
The mixed responses to the survey reflected the diverse nature of the zones and highlighted limitations in the council's policies.
"A shift in focus from enabling policies, towards policies which provide a greater degree of protection to the activities originally intended to be located in these areas, may be needed if council wishes to retain industrial activities in these locations and avoid or delay having to provide additional industrial-business zoned land," he said.
The council needed to address more directly nadequate planning provisions by managment, monitoring and enforcement.
• BUSINESSES SURVEYED
Results of the survey conducted by the QLDC:
- 58% said there was not enough parking or loading spaces in industrial zones.
- 81% agreed with retail activity in the zones.
- 46% agreed with residential activity in the zones.
- 69% said height limits should not be increased.
- 60% said minimum lot size was too small.
