The restaurant site, a long, narrow section on Hartstonge Ave, lies between the New World supermarket and a complex of 17 privately-owned houses and flats which have been built within the past three years.
The Mosgiel library and playground are immediately opposite.
The land is zoned large-scale retail, but residents had been told more houses were to be built there, a belief backed up by a 2005 Dunedin City Council consent granting permission for residential development.
Residents opposing the McDonald's development said the site was too small to accommodate a restaurant and were concerned about the negative impacts of increased traffic, increased night-time noise and the possibility of the area being a magnet for disruptive young people.
Malcolm Anngow said on Thursday the decision was an unpleasant Christmas present.
"It's not nice to have this dropped on our lap on Christmas Eve. There'll be no Santa at our place this year."
Submitters have 15 working days to lodge an appeal against a consent decision.
Because of the Christmas holiday break, the deadline for appeals on this decision is January 26.
Mr Anngow said he would spend his Christmas break considering his options before deciding whether to appeal.
"We, like most residents, are disillusioned by many of the council's recent decisions, including this one . . . The consent process was fair and we were treated courteously, but they haven't listened to us."
A family member, who did not want to be named, summed up her feelings: "McDonald's - I'm not lovin' it."
Resident Shelley Ross said she was "brassed off, but resigned".
"I expected this decision. I had a feeling the city council was going to grant it no matter what."
She said she would like to appeal but that might not be possible because of the cost.
Rose Doyle, who bought her flat 18 months ago, said she was "not impressed" and would consider whether it was worthwhile appealing the decision.
The restaurant car park will be immediately over her rear fence.
She said she understood the restaurant site was zoned residential and the real estate agent who sold her property did not tell her it was large-scale retail.
Residents were pleased the restaurant's opening hours had been reduced but believed McDonald's might seek 24-hour trading in the future.
Another neighbour, Lex Key, said she was "quite agreeable" to the restaurant proposal, especially because of the consent conditions imposed.
"I'm happy about the reduced opening hours, the reduced size of the signage, the building of an acoustic wall and the fact there will be no outdoor dining.
"For a long time, I have been concerned about the untidy condition of the block. I have been picking up a bag of rubbish a day. I think a restaurant with landscaping will improve the appearance of the area."
In its decision, the consent committee - Crs Colin Weatherall (chairman), Andrew Noone and Paul Hudson and Mosgiel Taieri Community Board member Bill Feather - considered any actual or potential adverse effects on the environment would be "acceptable".
While accepting it might be difficult to establish a feasible large-scale retail development on the site, the committee said the existing environment was neither purely commercial nor residential, but was a mix of commercial, retail, residential and community uses.
The concerns of residents had been considered, with the setting of restricted opening hours, the committee said.
It said a site management plan should be completed and a community liaison group should be established before the restaurant opened, saying both were "important mechanisms for facilitating a viable and positive relationship between the applicant and the local community".
Mosgiel McDonald's
Consent granted for restaurant and McCafe, drive-through, children's playground, parking, signage and landscaping at 14 Hartstonge Ave, next to Mosgiel New World supermarket. Consent granted with 18 conditions, including:
- Opening hours shall not exceed 6am-10pm Monday to Thursday, 6am-11pm Friday and Saturday, 8am-10pm Sundays.
- Usual McDonald's 10m-high free-standing pylon sign to be replaced by 5m sign.
- No external dining facilities.
- No customer vehicle access from Factory Rd service lane.
- No deliveries or rubbish collections after 5pm, or on Sundays or public holidays.
- Litter patrols at least twice daily on Hartstonge Ave, Factory Rd service lane and Reid Ave.
- McDonald's to monitor boundary noise levels.
- Noise levels at boundary not to exceed 55 decibels between 7am and 9pm, and 45 decibels overnight, on Sundays and on public holidays.
- McDonald's to erect acoustic fencing between restaurant and neighbours.
- Establishment of a community liaison group.
- DCC may review opening hours or boundary noise levels if restaurant has adverse effect on neighbours.
McDonald's voxpop
Anna Halls, Dunedin: "It's a bit of a shame a McDonald's is coming to Mosgiel, but that's the way life is . . . Families like mine want to follow a healthy diet, but most people end up going to McDonald's sometimes as a treat."
Anne Rodger, Mosgiel: "I'm not pleased, because the people who bought houses next door did so without the full information. I also see the problems that occur with carloads of young people and more rubbish. The supermarket may have to lock its car park."
Glenda Bowen, Halfway Bush: "My children will live in it. They are 19 and 18. We come to Mosgiel to do our shopping more than we go down the other way to Dunedin."
Brad Gilmour, Mosgiel: "I'm happy enough . . . I'm not keen on the site, but there was nowhere else for them to go."
Skateboarders (from left) Billy Gow, Taylor McCutcheon and Ricky Moore, Mosgiel, (all 12).
Taylor: "Yes! I'll buy burgers every day. We will probably come back to the skateboard park to eat them, so we might need an extra couple of rubbish bins."
Ricky: "McDonald's could sponsor the bins."
Billy: "They sponsor mini ramps at other skateboard parks, so they could do the same here."