The hearing next Thursday will consider a proposal by the Blue Penguin Pukekura Trust, a joint venture between the Otago Peninsula Trust and the Korako Karetai Trust, to hold guided tours at dusk to view the penguins as they arrive at the beach.
The beach is a popular spot for Dunedin people and tourists to view wildlife for free, and while pedestrian access during the day would not be restricted if the venture went ahead, vehicle entry would be restricted at all times.
Dunedin City Council planner Lianne Darby has recommended the hearings committee grant consent to what is a non-complying activity, but has suggested a condition meaning any restrictions to public access are limited.
Pilots Beach is a local purpose reserve, owned by the council.
Ms Darby's report on the issue said the trust planned to build a viewing platform, with guided tours for two groups of up to 50 people.
"The prime purpose of the application is to enable the ongoing management of the blue penguin habitat and the interaction of humans and penguins."
The council had already agreed to lease the area to the trust for the venture, subject to the result of the hearing.
Eight people have presented submissions, with five opposing the plan.
A common theme among them was a wish to retain free access to the beach.
Hamish Hamilton said in his submission he took visitors to Dunedin to the beach as it was an easy place to show them the city's natural beauty and the seals, sea lions and penguins that frequented the area.
Otago Peninsula Trust general manager Robyn McDonald has said while vehicle entry would be restricted at all times to ensure the safety of the birds, pedestrian access during daylight hours would not be restricted.
In an effort to reduce penguin deaths, vehicle access at night has been stopped for the past three years, and closed during the day more recently.
Ms Darby said the venture recognised the values that made the site an area of significant conservation value, and its use of the reception area and car park of the nearby Royal Albatross Colony meant no more building had to take place.
She recommended a condition whereby the developers could only restrict "general public access" for 90 minutes before dusk.
