Dunedin may yet get a flash new waterfront hotel after the city council and a Chinese-backed developer agreed to work on a new design and some rule changes to get it built.
The council last year rejected permission for a $NZ100 million ($A94.52 million), 27-storey, five-star hotel, which would have been the city's biggest building.
In the middle of an industrial area - surrounded by railway lines and a four-lane highway - it would have looked out of place and it was on reclaimed land, subject to earthquakes without any consideration of construction effects.
On Monday, Dunedin Mayor Dave Cull said the council and developers had signed a memorandum of understanding to try to find a way to get the hotel built.
If solutions can be found, an independent council-funded urban design panel would look at the plans and advise on whether or not they would work, Mr Cull said.
The panel's focus would be on "sustainable development and the creation of a design that contributes to a safe, healthy and attractive urban environment".
Once the panel and council staff were satisfied the new hotel proposal would work, the council would work to have the land re-zoned.
Any development proposal would still be subject to the Resource Management Act, Mr Cull said.
The developers also have to prove the hotel will be financially viable.
Timeframes for the memorandum have been redacted in the public copy of the MoU.
The hotel is the brainchild of 26-year-old Chinese-born Otago University graduate Jing Song and her husband.
Mrs Song said she was delighted with the moves after a very challenging two years trying to get the hotel approved.
"We know our hotel plans are exciting for Dunedin and we are very pleased to have established a framework to deliver a hotel that meets the desires of the local community."
The developers have appealed the council's decision to decline resource consent.
The appeal may go ahead if they aren't happy with progress.
