If approved by a Dunedin City Council hearings committee, the plans would result in North Dunedin dairy the Campus Wonderful Store and a neighbouring cafe being housed in the bottom storey of the new building and two apartments in the floors above.
Council planner Melissa Shipman recommended resource consent for the plans be approved, saying the effects would be ``no more than minor''.
``In my opinion, the proposal does not represent an overdevelopment and overintensification of the site,'' Ms Shipman said in the recommendation.
The development would also provide a higher standard of residential accommodation, adding diversity to what was available in the area.
Council urban designer Peter Christos was also supportive, saying the height and bulk of the new building would be more consistent with other buildings at the intersection of Union and Forth Sts.
The owner of a neighbouring Forth St property opposed the consent being granted, saying it was ``quite incorrect'' to say the effect on their property would be minor.
``The reduction of light alone will create a depressing environment and the shading and reduction of airflow will create a damp environment with health implications for the residents in our property,'' She Chun Choie said.
The owner of the building needed to apply for resource consent because their plans breached a number of residential zone 3 rules, including for density, site coverage and the fact it involves commercial activity.
The application for consent is to be heard at a hearings committee meeting next month.
