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Designs for the second stage of the Wanaka lakefront development plan were submitted to the Wanaka Community Board at its meeting yesterday.
The development would lead to the loss of about 120 lakeshore car parks, and no permanent replacement for them has been identified.
More than 30 members of the public attended the meeting at the Lake Hawea Community Centre, many of whom raised concerns about the plan in the public forum.
Solicitor Graeme Todd spoke on behalf of clients Neville Harris, Liz Hall and Lesley Burdon regarding the proposal to demolish the Millennium Walkway.
He said the proposal was "totally disrespectful" to those involved in developing the walkway and it should remain in its current location.
Wanaka resident Andrew Miller said it was "totally irresponsible" no replacement parking had been identified.
The plans went through public consultation in 2016, but those plans contained more than 200 angle parks in Ardmore St to replace those lost on the lakefront.
Queenstown Lakes District Council community services manager Thunes Cloete told the community board those parks had been removed from the plans as car parking was being addressed in the Wanaka master plan process.
But the board was not convinced, citing its own concerns and those of the community, and decided to defer the plans.
"Parking is the issue for me," board member Ed Taylor said.
"In 2016, the idea was we were taking the cars off the lakefront and on to the road. People could still park there, walk on to the grass and sit down and have a picnic
... Without having the parking addressed we're just going to have a mishmash that could drag on for several years."
Board member Rachel Brown and Cr Ross McRobie agreed.
"The lakefront is a destination and we need to be able to park there," Ms Brown said.
"If we have to add parking later I think it could be a waste of time and money, so my view is we need to wait until that master plan is completed to show us what the total component of parking is for the town ..." Cr McRobie said.
Deputy mayor Calum MacLeod said the plan "should be deferred".
"What we're here to decide today is potentially too early."
He acknowledged the recent trial to lift and relocate the Millennium Walkway tiles had failed, and said there should be an option to "leave them where they are".
After hearing feedback, Mr Cloete recommended deferring the second stage of the development plan until the parking issues had been resolved, and begin the design stage of the third stage of the plan, which focused on the area between the Dinosaur Park and the entrance to the Wanaka Marina.
The board agreed to those changes, chairman Quentin Smith saying the issue had been "one of the most difficult to deal with in my time on the community board".