John Cutler, of Cutler Investments Ltd, applied for consent to build a three-storey residential building at 709 Great King St, behind a commercial building that formerly housed Civic Video.
Mr Cutler's company owns the site. Dunedin City Council consultant planner Nigel Bryce said recently the original application was for an ''unacceptable'' development and the consent committee could not consider it.
But the developer came back with new plans yesterday that appeared to have a good chance of approval.
The original plans would have meant the partial demolition of the building on site, which already houses residential flats and commercial tenants, to make room for three new six-bedroom flats.
That would have lifted the total number of residential rooms on the site to 31, which was more than the 28 allowed under district plan rules.
Mr Bryce told committee the development would now have two seven-bedroom flats, meaning 14 rather than 18 new rooms, with 15 car parks on site.
The changes meant it was acceptable for the committee to consider.
Mr Cutler's architect, Sam Smith, said the building would be no higher than the previous planned structure, and would be set back further from boundaries.
There were ''minor penetrations of the height plane'', but better than the existing structure.
The accommodation would have amenity areas for students.
The building was in a residential 3 zone - the same zoning as an area such as Royal Tce, a quite different environment from Great King St, Mr Smith said.
''We're trying to compare it to what's already there.
''We're saying it's a vast improvement.''
The owner of a neighbouring building, Barbara Kennedy, who is also a landlord of student flats, raised concerns about behaviour in flats housing more than four or five students.
''It's so hard to manage big flats,'' she said in her submission.
''They booze themselves stupid in the first few weeks.''
Residents might come with glowing references, but the friends they invited to visit did not.
''You don't get reports on their friends,'' she said.
Cr Benson-Pope said he shared those concerns, but the issue could not be part of the hearing, as there were no district plan rules that regulated room numbers in individual apartments.
Council senior planner Phil Marshall said that was an issue with the district plan that needed to be dealt with.
Another neighbouring landlord, Ross Whitburn, said in an at-times spirited submission he was happier with the new proposal, but he asked for some height changes to fences to allow sunlight though to properties he owned.
''Sun is everything in this world.''
Cr Noone said he was pleased with the way the various parties had worked together on the issue.
''It does help us a lot.''
The committee would undertake a site visit, then consider its decision.
