The owners of the winery are looking to relocate elsewhere in the Western Bay.
Tim Preston, a director of land owner Preston Group Ltd, said the winery and event venue would not be impacted by construction activity for several years.
Stage 1 of the retirement village will begiin on the neighbouring property adjoining the Mills Reef site with construction of the first 17 villas.
Mr Preston said the aim was to create a "modern retirement haven" with all the latest facilities. It would incorporate all the latest techniques in urban design, roading and streetscaping, he said.
Earlier this month, the Bay of Plenty Times spoke to resident Hamish Richmond, who lives with wife live in St Regis Way.
At the hearings on October 8, Mr Richmond told Commissioner Alan Watson at the Tauranga City Council chambers he was "disgusted" by the consultation process undertaken by the applicant, particularly obtaining some neighbours' approvals by going house-to-house.
"I think the whole process has been a farce," he said.
Mr Richmond said that side of Moffat Rd was designated a rural residential zone and, when they first bought their property in 1998, they were assured it would remain so for 35-40 years.