Mills Reef Winery has obtained resource consent for the project to re-develop the winery grounds as a retirement village.

Preston Group director Tim Preston was notified of the consent today following a hearing which was required because the application exceeds the development density and scale.

The first stage of the Mills Reef development. Photo: Supplied.

The majority of the site is zoned Rural Residential under the City Plan, while a small portion of the south-western corner is zoned Rural.

The development includes 198 two-and-three-bedroomed villas to be built over several stages, in free-standing and duplex configurations.

The landmark Mills Reef art deco winery building is to be retained as a centrepiece and focal point for the community, along with a full range of facilities, including a spa, gym, bowling green and indoor lap pool.

The owners say sprawl is squeezing the prestigious winery and restaurant operation off its Bethlehem site. The project has been staged to ensure a seamless transition and eventual relocation of the winery to a fresh site elsewhere in the Western Bay.

The award-winning winery and popular restaurant/wedding venue will not be inhibited by construction activity for several years, says Tim.

'The aim is to create a truly modern retirement haven that enjoys all the latest facilities, incorporating the newest techniques in urban design, roading and streetscaping,” says Tim.

'Preston Group is teaming up with Classic Builders to ensure the quality of the development, which is being built to the requirements of the Retirement Village Act.

'Peter Cooney, a director at Classic Builders, says the development is in keeping with Bethlehem's status as the most desired retirement area in the North Island.”

Stage one is to commence on the neighbouring property adjoining the Mills Reef site, with construction of the first 17 villas. The sod-turning ceremony is expected to take place in February 2016, confirms Tim.

There will be extensive landscaping, with a 10-metre setback from Moffat Rd, and the park-like feeling will be maintained.

The whole site will be ringed by a walking track and fitness trail for residents.

The development process could take up to 10 years to complete, with the winery and restaurant/wedding venue staying put for the next five years.

The winery operation will eventually relocate to expanded facilities that enable it to take full advantage of its international success in the industry.