Woof bar co-director Dudley Benson proposed the colourful crossing at a July council meeting as a statement of support for the city’s LGBTQ community, and said he was ‘‘very disappointed’’.
He had suggested the intersection of Moray Pl and lower Stuart St as the site.
A paper petition gained 3243 signatures in support of the concept, and an online petition gathered a further 3259 names.
A report set to be tabled at a meeting of the council’s planning and environment committee on Tuesday has instead recommended a rainbow crossing be integrated with the centre city George St redevelopment.
The location proposed in the petitions had not been recommended, because a raised intersection and table would need to be built to ensure traffic speeds remained below 30kmh, at a projected cost of up to $120,000, with no money available for the work in current budgets.
Mr Benson was saddened cost appeared to rule out his suggestion.
‘‘[The crossing is] something that will put us on an international stage, will bring queer people to Dunedin and stand against bullying.’’
He said he would now focus on pushing for a rainbow block as part of the centre city upgrade instead.