The Ayrburn Screen Hub, being considered by an expert panel under the Fast-track Approvals Act consenting process, has received early support from Tourism Minister Louise Upston, Infrastructure Minister Chris Bishop and Minister for the South Island James Meager.
But questions have been asked about the argument from the developers it would generate $65 million a year in economic benefits for the region, particularly after their employed economist, Dave Gibson, expected the economic benefit to range from $30m to $65m, "if the gods were on your side".
Neighbour and economist Paul Dougherty is worried the site is too large, and also would not generate the income its proponents claim.
"The proposed screen hub is entirely against the wording and intent of the proposed district plan and entirely out of keeping with the intended level and type of development for this area.
"It effectively allows an intensive industrial activity and intensive accommodation in an area clearly intended only for very low-density residential living and the maintenance of high rural and open-space amenity values. It will have significant immediate negative impacts on the amenity of the area."
Mr Dougherty was highly sceptical about the proponents.
"The regional benefits analysis of the screen hub is entirely inconsistent with the ongoing and significant decline being observed in the New Zealand film and TV production industry.
"The economic assessment is limited in scope, no more than supposition, runs against current market trends of declining production volumes and is significantly overstated."
Mr Dougherty said the lack of substance of the economic plan was because the application was a "smokescreen" to obtain some of the highest-value land in New Zealand.
"The panel should be alive to this risk and if it is to approve the application, should impose conditions that maximise the probability the proposed benefits of the production facility actually arise by making the applicants’ decision to proceed with construction clearly subject to the economics of building and operating the production facility and not the value of alternative options created from the wider development."
In a minute issued by the hearings panel last week, the panel expressed doubt about the economic case and said many came to Queenstown to shoot films without the need for a screen hub.
Regarding concerns the screen hub could become a Trojan horse for development, the panel acknowledges that the accommodation might be "available for non-film studio use, provided it can be satisfied that film studio-related use is and remains the primary purpose of the accommodation, consistent with the application".
The applicants behind the Ayrburn Screen Hub have argued in their economic case that Queenstown did not yet take full advantage of the potential for film and television in the region.
"While some major productions have been filmed in Otago region (Mission Impossible: Fallout, A Wrinkle in Time and The Hobbit trilogy) and this area is the third-largest production hub in the country, the industry’s current contribution does not reflect its valuable opportunity.
"This is in large part due to much of the valuable production and post-production aspects of the business not being not accommodated within the region.
"It is this opportunity the proposed development is attempting to realise."
Although the Queenstown Lakes District Council has to assess whether the application fits within the planning rules, the panel has asked the council to speed things up and streamline its decision-making.
