The project, which involves demolishing a number of buildings, including two category II listed historic buildings, was promoted by Invercargill City Property Ltd and HWR Property Ltd, part of the H.W. Richardson Group.
It affects the block between Esk Street and Tay Street, bordered by Dee Street and Kelvin Street.
It is designed to reinvigorate the centre of Invercargill.
Commissioners John Maassen, Gina Sweetman and Jane Black decided the application for resource consent should be granted, subject to a long list of conditions.
"We consider that the applicant has demonstrated that this proposal will make a significant contribution to the advancement of the sustainable management of natural and physical resources in the business 1 zone of Invercargill City.''
"The implementation of the proposal in conjunction with public infrastructure will provide many opportunities to further enliven and enhance the locality in ways that cannot be secured through the consent process.
"We have also identified other elements of the proposal that are worthy of reflection and re-consideration.
"We are sure the final outcome will meet the needs of Invercargill's people and the opportunities that will ensue will follow the legacy of Invercargill's earliest visionaries, Christian Niven and John Kelly.''
Among the 52 conditions were some which specified how heritage buildings could be demolished or altered.
The developers must record buildings to Heritage New Zealand standards, the Bank of New South Wales building must be preserved and maintained, the brickwork on the Southland Times building facade must not be painted, heritage veranda posts are to be reused, and heritage fabric is to be salvaged.
Members of the public have 15 days to appeal.
