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As reported in the Otago Daily Times on Wednesday, the tourism giant wants to build nine permanent structures on its leased site in Ben Lomond Recreation Reserve.
It also wants to set up and operate 16 Portacom or container buildings that will support the major upgrade, as well as the construction of a luge workshop and the replacement of the luge chairlift.
The recommendation from council parks and reserves senior planner Aaron Burt to give Skyline the go-ahead was approved unanimously by councillors at yesterday's full council meeting.
Councillors Penny Clark and Tony Hill were not present.
The council had authority to give approvals for the work as an affected party, as lessor of the site, and with delegated ministerial authority.
The approval remains subject to resource consent for the temporary buildings being granted.
A consultant's report accompanying the consent application for the temporary buildings said one of two Portacoms already on the site had been there for about two years, and retrospective consent was required.
The upgrade remains subject to a final decision by the Environment Court, and other planning hurdles.