Invercargill's Wachner Pl will be redesigned to allow bus access through to Esk St west from Dee St.
Councillors voted 10 to three in favour of the amended option.
Cr Ian Pottinger said the city landscape had drastically changed since Wachner Pl was first developed 34 years ago and the redevelopment had now become the catalyst for change.
The space needed to move forward to remain relevant to the city.
"Do we want [hotel] visitors to have welcoming access to our brand new city or do we want them navigating a concrete-steel barricade that would act as the Berlin Wall? What would a city with heart want for a visitor experience?" he said.
Three options were offered for public consultation but Mayor Nobby Clark amended the options by offering an alternative to the three voted on by the public.
The original options included:
1.One-way passage through Wachner Place for tour buses.
2.People-first connection to the city centre with bus access from Leven St.
3.A hybrid public realm, with tour bus access to the rear of the hotel.
Mr Clark proposed altering option one to include retaining the clock structure and use the space north and south for vehicle and pedestrian movement.
"I’ve listened carefully to what was said at public submissions ... and also our workshops.
"It seems to me there’s some potential middle ground between option one and two ... I think there can be a win-win by introducing a middle ground."
Mr Clark acknowledged opinions were polarised about the vehicle access.
"A starting point would be to retain the clock ... it could still be taken out [later]."
Of the 173 public submissions, only 13% wanted the first option, 59% preferred option two and 9% option three.
Councillors Lesley Soper, Peter Kett and Ria Bond did not support the amended bus-only access option and voted against it.
Cr Soper believed the type of vehicle needed to be more clearly defined otherwise, while the council meant bus-only access, drivers could interpret it as permitting all-vehicle access and the council should be choosing a people-first connection.
The majority of submitters had clearly indicated they were against option one, she said.
Cr Ian Pottinger said it was impossible for buses to exit lower Esk St because they were unable to turn in the smaller space.
Cr Alex Crackett believed the new proposal was a "fantastic" compromise which allowed vehicle use while retaining some of the area’s character features.
"It doesn’t preclude us from going through to the design phase ... it doesn’t stop those hospitality spaces or shared spaces from thriving either."
By Toni McDonald
