The mayor of Dunedin wants to reach a compromise with a developer hoping to build a 27-storey hotel on the city's waterfront.
The developer is appealing against decision by a Dunedin City Council resource consent panel which turned down the $100 million project on 5 June this year, saying it had failed a key legal test.
Until now, the developer and the city council had been unwilling to talk about finding common ground on the controversial five-star hotel.
Mayor Dave Cull says he is offering to seek independent planning advice about how the hotel could be built within the constraints of the district plan.
Mr Cull says he has received a positive response from the developer, which says all options are on the table.
He says a compromise may mean building a smaller hotel on the same site or moving it to a different location.