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Proposer Larry Richards, of Australia, was not at the meeting.
He yesterday told the Otago Daily Times the development was dependent on commercial and "in-confidence" negotiations.
He did not want to discuss the proposal now, but happily would once the operation had been secured.
His planner, Lauren Barnett, of John Edmonds and Associates, said it would be the first attraction of its type in New Zealand. She believed similar activities were planned for lakes Dunstan and Wakatipu.
"The licence is renewable every year ...
"And if something really bad is happening, there are provisions [in the district plan] to step in and do something. You don't have to wait," she said.
After taking advice from Lakes Property Services property manager Jo Conroy, the board decided a licence would not be granted until after the activity had been demonstrated to their satisfaction.
Concerns included noise and whether the ball or balls would use up a significant portion of the Roys Bay non-motorised activity area.
The board also noted the proposer had not yet built a ball.
"If they are going to put one on Lake Dunstan, let them put it in there first and see how it goes," Cr Cocks suggested.
Wanaka Kayaks operator Hamish Fraser said the proposed activity would have a detrimental effect on his business and could create hazards for kayakers and swimmers.
A generator and compressor would create unacceptable noise, he said.
Other matters discussed by the board on Tuesday included:
• Wanaka businessman Peter Marshall objected to a proposed 33-year lease over land near the Wanaka Yacht and Power Boat Club for a car park.
The council already had a staged redevelopment project for the area, and to deal with the "junk yard of yachts" separately was "ridiculous", Mr Marshall said.
After taking advice from Lakes Property Services property manager Jo Conroy, the board decided to approve a three-year lease for the car park area, with the club to be reminded it must continue to permit public access through the area and the lease could be terminated at any time if the land was needed for recreation purposes under the Reserves Act.
The lease, separate to the clubhouse lease, was intended to give the club power to legally require people who left yachts there all year round to remove them.
• A five-year lease has been granted to the Wanaka Rotary Club for a community vegetable garden on council land at 192 Warren St.
The 600sq m section is next to the council works depot and former depot houses.
The project will allow Rotary to establish a sustainable garden, teach people gardening skills and provide vegetables to needy families.
• The proposed Wanaka Springs project on Lakeside Rd has been approved in principle, with the springs trust to take responsibility for construction costs and project management.
The council will supply seating and plants plus assume ownership and ongoing maintenance.
• Shirl Rowley's proposed memorial wall for babies at Wanaka Cemetery will receive a $5000 council contribution.
The board has approved the plan and location and the council will maintain the completed wall.
• The Lake Outlet Camping Ground and Rippon Vineyard can both join the Wanaka wastewater scheme area, the board has decided.
The approvals are subject to conditions, including paying connection costs.
Three years ago, the council refused the camp connection.
The Otago Regional Council had become more insistent upon the work.
The Rippon Vineyard extension will connect new buildings and a restaurant to both the wastewater system and the town water supply, with the proviso that town water not be used to irrigate the vineyard.