"While an unorthodox approach within Central Otago, the proposal does not exceed the anticipated residential carrying capacity of the land and provides for cohesive productive management of the balance lot and, therefore, does not necessitate a plan change approach," the panel said.
The Jolly Rd subdivision comprises one 5503sq m lot, 15 lots from 1735sq m and 1914sq m, and a jointly-owned farm block of 129ha.
Council consultant planner Kirstyn Lindsay told the panel the clustered development would enable a more cohesive and productive use of the remaining 129ha than the land being split into 16, 8ha blocks.
The Otago Regional Council opposed the subdivision, concerned about the residential scale and density in a rural area, precedents, loss of productive soils, reverse sensitivity and no functional need for the development of that particular land.
Neighbouring property owner Greenlight Land Ltd supported the development but sought a no-complaints covenant in relation to its own subdivision, still in the consent process.
The Hokonui Runanga opposed the development but said if it was granted, conditions should include no further subdivision and groundwater protection.
The panel said reverse sensitivity effects could be managed to be no more than minor, imposed a condition for a secure, reliable potable water source and said individual wastewater systems, with secondary treatment, could serve the 16 lots without adverse environmental effects.
Attempts to contact developer Lloyd Morris, of Auckland, proved unsuccessful.