City council planners are recommending that resource consent be declined for a new supermarket and cafe complex in South Dunedin.
Raeward Fresh is applying to build a small supermarket, cafe and warehousing on the corner of Midland and Otaki streets.
It would focus on locally sourced fresh produce but council planners are unhappy about a retail operation being set up in an industrial zone.
Raeward Fresh started in Christchurch and was bought by Foodstuffs South Island in 2012.
The Dunedin City Council hearings committee is due to consider the application next week.