Last month, the council's resource consent committee gave hardware and gardening shop Bunnings an exemption for a non-complying activity, in that the existing industrial 1 zoning would have restricted retailing activities.
The late-May application was challenged by Dunedin company Duvlin Properties, whose directors and shareholders are Dunedin businessmen Alistair Broad, Tony Clear and Greg Paterson, represented by barrister Dr Royden Somerville QC.
Mr Broad, contacted overseas yesterday, confirmed an appeal would not be made by the group, but said the "bigger picture" remained.
He did not want Dunedin turned into an "Auckland mall-strip" when the city council's geographical boundaries were one of the largest in the country.
When asked, he agreed the establishment of a $10 million Mitre 10 Mega hardware store nearby could be seen as setting an exemption precedent, but maintained Duvlin saw the Bunnings exemption as beyond the council's district plan.
"Why not just scrap it [the district plan] altogether?" Mr Broad asked.
The Strathallan St site will become vacant in January when the lease of NZ Woolhandlers expires.
Demolition will take about two months, construction seven months and the Bunnings store is expected to be to be open by November or December next year.
