"There is enormous potential for the story of the inner harbour to become a major tourist attraction, and the hospital site is the best place to tell it."
In earlier written submissions, the trust and Historic Places Hawke's Bay had asked for a public viewing platform to be included atop one of the apartment blocks if the project went ahead.
Todd Property's lawyer at the hearing, Chris Simmons, said on Monday the viewing platform proposal was not feasible.
Robert McGregor, heritage officer for the trust and deputy chair of HPHB, said in his submission to the hearing yesterday it "beggars belief that this site will become just another private property, with its huge importance unacknowledged".
But senior council planner Paul O'Shaughnessy, who has recommended the project be approved subject to a lengthy set of conditions, said further discussions would be held with Todd Property about adding "heritage elements" to those conditions to acknowledge the historic significance of the site.
Heritage elements could include the naming of a new street planned for the subdivision, the naming of the two tower blocks and installing in-ground plaques setting out historic information along walkways within the development.
Mr Simmons told the hearing Todd Property acknowledged the heritage associated with the site and had always intended to recognise it.
The company's initial resource consent application included plans for a heritage pathway with signs along the southern edge of the property but the application was later modified following discussions with the council and the walkway excluded.
However the company had been considering ways heritage could be incorporated into the design of the development and using historically significant names for the new road and the apartment building names may be suitable ways to "reflect on the site's heritage", he said.
Mr Garland adjourned the hearing yesterday to allow the council and Todd Property to work on finalising the proposed conditions over the next few days. A decision on the consent application is likely before Christmas.