Developer CPD 2012 Ltd wants to build the supermarket on a block of land between Centennial Ave and Ventry St.
Central Otago District Council senior planning officer Oli Monthule-McIntosh said the provisions set out in the Resource Management Act meant he was "not persuaded" the proposal mitigated or avoided adverse effects on residential character and amenity of the residential resource area it was proposed for.
The owners of neighbouring properties were more supportive.
Newall Trainor, who lives in Ventry St beside what would be the service entry of the proposed development, told the hearing panel he wanted the supermarket to go ahead.
But he did have concerns about the noise that would be created by air conditioning, start and finish times for unloading goods, parking and vehicle movements, mainly in regard to any additional noise on top of what he already experienced.
"I’m all for this going ahead. Noise doesn’t mean a lot to us - for the 13 years I’ve lived there I’ve had noisy neighbours.
Centennial Court Motel owner Benn McKenzie said his business would border the development.
He largely supported it, but like Mr Trainor he was worried about noise, particularly from smaller trucks.
"It’s the noise created by them, the shouting and throwing things on the ground."
The proposed delivery times would potentially affect his guests, he said.
St Bathans resident Lorraine Bennett-English said she had observed the "ribbon development" of Alexandra concentrated around both state highways since the 1970s , but as her "go-to town" it had been losing out to other centres.
To her, the supermarket made sense.
"A second supermarket is well overdue ... This opportunity may not come again or at least not for quite a while."
After hearing from submitters independent commissioner Gary Rae adjourned the hearing for a week to allow the developer’s counsel time to respond to the concerns raised during the two-day hearing this week, including from the council.
