Carousel owner John Devereux has applied for an on-licence to run a bar in the empty Terminus building, also formerly known as the Break, in Great King St.
Police say Mr Devereux is not fit to hold an alcohol licence, based on repeated breaches of his licence while running his lower Stuart St venue.
The application will be heard by the Dunedin district licensing committee, tomorrow.
In his submission, police alcohol harm prevention officer Sergeant Ian Paulin said repeated overcrowding at Carousel, which had maximum occupancy of 218 people, showed Mr Devereux was not a suitable licence holder.
Questioned about the repeated breaches, Mr Devereux told police he had only been slightly above the limit, Sgt Paulin said.
Earlier this year police applied to the Alcohol Regulatory and Licensing Authority (Arla) to suspend Carousel's on-licence and Mr Devereux's manager's certificate.
Both matters would be considered by Arla at a hearing in the Dunedin District Court on April 15.
When contacted, Mr Devereux said he was unable to comment on the matter before the hearing.
In his report on the application licensing committee secretary Kevin Mechen said the opposition was due to Mr Deverux's suitability and the application itself had not been opposed.
It would be up to the individual parties to state their positions during the hearing, Mr Mechen said.
Dunedin City Council licensing inspector Alison Blair and Public South Health medical officer of health Toni Paterson did not oppose the application but supported Sgt Paulin's submission.
It is not the first time Mr Devereux has been in trouble for overcrowding.
In 2015 he faced opposition from police when he sought to renew Carousel's licence, after repeated overcrowding.
He was granted a reprieve after agreeing to investigate options to increase the bar's capacity.
