What was to have been known as Nicky’s Liquor at 531 Hillside Rd "failed in that the premises does not meet the required standard to qualify for an off-licence", a district licensing committee said in its ruling.
The man behind the application, Graham Murphie, said yesterday the decision was correct and he would not disrespect the committee by appealing.
But he said he did not plan to give up, and a way would be found to meet the needs and wants of customers, while operating within the Sale and Supply of Alcohol Act.
The decision followed warnings from police and the Southern District Health Board (SDHB), both of which opposed the application.
Mr Murphie, a tobacconist, applied for the licence in an attempt to increase profitability amid falling tobacco sales. Alcohol harm prevention officer Sergeant Ian Paulin said, in his response to the application in September, having another liquor store would result in increased crime and alcohol abuse in what was a vulnerable area.
He said the "relatively deprived area" consisted of a high concentration of cheap, poor-standard rental accommodation.
"People that generally live in such premises are unemployed, single, or couples with no children, of low socio-economic standing and are highly vulnerable to the attractions of discounted alcohol from off-licences."
The SDHB said the store was in a high-deprivation area bordered by other such areas, and had higher proportions of Maori and Pacific people than in Dunedin city as a whole.
The decision said the committee had to consider whether the premises would be a bottle store, and meet an 85% threshold of alcohol sales, or whether alcohol sales were complementary to tobacco.
It then needed to consider the effect of the premises on the amenity and good order of the locality.
Committee chairman Colin Weatherall said if there had been an indication 85% of sales were going to be alcohol-related, the committee would have been able to take that into consideration, but no such indication had been given.
The committee did take into consideration evidence from police and social services there were plenty of options available for those who wanted to buy alcohol.
As well, he said "it’s not a community that would be strengthened by having another liquor outlet".
Mr Weatherall said Mr Murphie had said from day one he planned to have a range of bourbons, which were regarded as "heavy liquor".
If he had said instead he had planned a beer and wine outlet, "that may have had a benefit towards him".
But Mr Weatherall said when the committee considered the Act, "he very clearly didn’t meet the threshold".
Mr Murphie responded the decision was correct.
"It would be disrespectful to undermine the local DLC, who have a very good history of decision-making, by appealing."
On the issue of the area being vulnerable, Mr Murphie said South Dunedin people in general were resilient, had a good sense of humour, and were great customers.
"It’s not a suburb in a third world country. I lived there and enjoyed my time as a resident in South D.
"Prejudice regarding this area is not appropriate."