Environment Minister David Parker yesterday announced 11 infrastructure projects, which included building 180 residential units and retail space on the former Wakatipu High School site, to be built under a new law.
The Ngai Tahu Property development, now known as Te Pa Tahuna, would lead to the creation of 100 jobs.
Queenstown Lakes Mayor Jim Boult described it as "great news".
"I hope this is the first of a number of these shovel-ready projects that are approved for our district.
"We know a number have been shortlisted so it is great to see this one across the line.
"It will create 100 jobs on its own so we are really excited about that.
He called it "a good piece of news ... when we need it".
Mr Boult confirmed it was not one of the projects the council proposed as part of the Crown Infrastructure Partners’ "shovel ready" fund.
He also said other businesses were applying for funding through the Government’s strategic tourism assets protection programme, which is part of its $400million package for the New Zealand tourism sector.
While Whale Watch Kaikoura received $1.5million and Discover Waitomo $4million, no funding has been mooted for Queenstown.
"A number of businesses in Queenstown have applied for similar assistance and we are fully supportive of that and think there are a number of deserving of that."
Last December, Ngai Tahu Property announced plans for a 300-plus housing development on the site, neighbouring Gorge Rd, which would include up to 100 KiwiBuild apartments.
Mr Parker confirmed the Covid-19 Recovery (Fast-track) Bill would allow projects to proceed through a quicker consenting process.
Other projects included the Kaikohe water storage facility, Unitec, a high-density housing project in Auckland, Britomart East upgrade, Wellington Metro upgrade and Picton ferry dock and terminal upgrade.
