Plans for the proposed 1500sq m two-and-a-half-storey facility were presented at yesterday's board meeting by John Charrington, who is behind the project, with support from board chairman Lyal Cocks.
Mr Charrington, who has an extensive background working in financial markets and on fundraising projects, lives in Sydney but is a part-time resident of Wanaka where he owns property with his partner Pamela McBride.
The proposed new arts facility would be capable of hosting high-calibre national and international exhibitions in three separate galleries and small ensemble recitals, and would provide education and activity space for the arts and a small sculpture garden.
A charitable trust is being established to receive funds and manage the facility and Mr Charrington is seeking a long-term ground lease of the council-owned site.
Cr Cocks urged the board yesterday to give its "whole-hearted support and endorsement" of the proposal, which members subsequently approved unanimously.
Mr Charrington now needed to apply through the council's property sub-committee to take over the lease of the site, with the support of the Arts Centre Trust, Cr Cocks said.
During consultation with various individuals and art groups, including the Arts Centre Trust, Mr Charrington had received a supportive response towards the proposal, including from people who had provided professional input.
"I've noticed a fantastic level of goodwill among people who have been helping me professionally to offer me their services pro bono . . . that's a good sign that the community feels strongly enough about it and are very happy to support it," Mr Charrington said.
"The mood is positive and that encourages me."
He could not provide a cost estimate for the facility yet. While the "raw shell" of the building would probably be "quite cheap", other necessary costs such as climate control, lighting and security would mean it would be it a multi-million dollar project.
He expected the bulk of the funding for the art gallery to come from private donors.
Once established, room rental and gallery admission fees would help fund the facility.
Mr Charrington hoped in time the gallery would acquire its own permanent collection, largely through gifts and bequests.
Fiona Campbell, a Wanaka art collector, Real Art Road Show Charitable Trust founder and Te Papa National Museum board member - who has spoken out about the need for better local facilities - had already agreed to loan part of her collection to the gallery when it was not on the road, he said.
During yesterday's public forum, a request was made by Upper Clutha Historical Records Society chairman Graham Dickson and committee member Graham Taylor, to include a small local museum in the building. However, Mr Charrington said limited space ruled out a museum.
