"It was a matter of how much time do you let go by - it's a matter of being sensible."
Council had canvassed the idea of the memorial with the families of the victims and had received a "resounding yes", Mr Booth said.
Last year the council formed a working group to investigate the idea of a memorial after receiving a letter from Ruth McIntosh, the sister of victim Stephen Hopkirk, who proposed a memorial plaque near where Hopkirk and his partner, Belinda Harter, and the nine other people in the balloon died.
"I'm sure the people of Carterton were affected by the tragedy in their community and it certainly has had a lasting impact on the family and friends of those who died. My mother had heard from a member of your community that at the time of the crash donations were made to the council, so perhaps these funds could go towards a small plaque in Somerset Rd near the place of the crash," she wrote in the letter, which was discussed at a council meeting in August last year.
The memorial is being erected on land owned by Graeme Tulloch, who said he had raised the idea of creating an off-road space after seeing some "kids hop out and a truck go past" the site.
"If it kept happening someone was going to get hurt."
A "steady stream of people" had been stopping and pulling over on the narrow stretch of road, Mr Tulloch said.
"We don't want to have more accidents there - and it's the little bit you can give to the community now and again."
Council community development manager Carolyn McKenzie said the council was responding to requests from the community and family that visited the site.
"It's to give them a safe and secure space off the road to pay their respects. That has been a concern because there were a number of people affected by the tragedy and we and the landowner have recognised that we need to provide a safe place for people to stop."
Safety was especially important as the 100km/h road was often used by logging trucks, Ms McKenzie said.
A special memorial unveiling service will be held on the anniversary of the tragedy on January 7, with some family members and emergency services staff expected to attend. The public is also welcome.