The Memorial Hall Charitable Trust would be used as a "fundraising vehicle" to help raise the $2,562,000 cost of upgrading the council-owned facility.
Cr Cath Gilmour was appointed council representative and up to nine others will join her on the trust.
Ms Gilmour said the trust had a year to raise the funds.
"We have a lot to achieve in a year and we will all be busy."
The recommendation said because the trust would be a formal group independent of the council, it would have a greater range of funding support than if it were applying for the support under the council banner.
The trust would raise funds to carry out the planning, consultation, research and preparation for the upgrade.
The recommendation required representatives from the district council, Showbiz Queenstown Incorporated and the Returned and Services Association.
Initial trustees were named as Alexander Derbie, Steve Wilde, David Geddes, Rachelle Greene, Jan Maxwell, Kylie Brittain and Isabella Chaney.
The council decided in August to contribute $300,00 to the upgrade as part of the 2012-13 long-term plan.
