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Queenstown Lakes District Council staff have recommended the council enter a partnership agreement with Ngai Tahu to develop a community precinct.
It entered into a memorandum of understanding with Ngai Tahu Property to explore development options for the sites on Stanley and Ballarat Sts last October.
In a report prepared for councillors ahead of tomorrow's full council meeting, staff recommend the partnership be formalised.
Mayor Jim Boult said the proposal provided a ''community precinct'' approach, the development being expected to realise a new dedicated library, a performing and visual arts centre, a town square, and commercial buildings, as well as the council's ''one-office'' administration building.
Ngai Tahu Property chief executive David Kennedy said it welcomed the opportunity to build on preliminary discussions following the MOU.
The sites are mainly occupied by public car parks. The report states public car-parking will not be retained other than what is necessary for the new facilities. Public parking would be ''provided elsewhere'' and funding could be reallocated.
If the partnership agreement is approved by councillors, the council and Ngai Tahu Property will work towards a development agreement and explore a site development plan.
Community and stakeholder consultation and engagement for the possible community and cultural facilities planned for the site will then take place.
Council officers will undertake detailed discussions with any affected parties on the site.