The Queenstown Lakes District Council's plan to build a $50 million convention centre in the resort has taken another step forward.
Mayor Vanessa van Uden says councillors have voted to pay for the centre by means of a targeted rate.
The council vote means businesses close to the complex in central Queenstown will pay most of the costs.
Ms van Uden says it's not fair for the whole district to pay for the complex because there are varying levels of benefit.
The Government has offered to contribute about $20 million, with Prime Minister John Key saying a convention centre in Queenstown is needed.
The proposal will now go through the district plan process with a final vote on whether to build the centre in June.
Under a worst-case funding scenario, residential ratepayers will face a rates hike of about 3 percent.
