A proposed expansion of Alexandra's commercial sector has been denied resource consent by the Central Otago District Council.
Alexandra businessman Ian Day, who owns and operates Ian Day Lifestyle Equipment in the town's main business area, applied to build a similar store about 4km away.
His proposed new development, between Alexandra and Clyde with frontage to State Highway 8, attracted opposition from submitters, who said it would create a negative precedent for retail and commercial development in rurally-zoned areas.
The New Zealand Transport Agency also submitted in opposition to the proposal, citing potential traffic problems, and requesting the development be refused consent in its entirety.
CODC planning consultant David Whitney recommended consent be denied.
In the CODC's written decision to decline consent, it was stated there were areas more appropriate for commercial and retail expansion within the wider Alexandra area.
Mr Day's original application was scaled down when he presented it to the council's hearings panel in early March, in an attempt to mitigate perceived adverse effects.
But the council found the proposal would create traffic problems, upset lifestylers in the area, create unwanted precedents for further development, and be incongruous in a rural setting.