Central Otago District Council planning consultant David Whitney recommended approval be declined for the subdivision next to McNulty and Kawarau Gorge Rds, near the town's industrial area.
In a report to the council's hearings panel, which will hear the application next Tuesday, Mr Whitney said the development would ''not serve to maintain and enhance amenity values and promote a pleasant living environment''.
''Adverse effects'' because of a building line restriction breach were cited as reasons to refuse consent.
In the planners report, the subdivision was deemed ''unusual'' as it proposed creating residential lots between a 30m building line and McNulty Rd.
A rule in the district plan states ''no building shall be erected within any building line restriction shown on the planning maps between the building line and the feature to which it relates''.
The proposed subdivision, on residential resource area-zoned land, was ''fundamentally inconsistent'' with the restriction.
The applicant, Summerfield Estates Limited, proposed to build a 2m-high concrete wall along the road which would provide privacy and noise mitigation to the residential lots.
Construction of the wall would mitigate the building line restriction breach, the application, prepared by C. Hughes and Associates Ltd Surveying and Resource Management, claimed.
Twenty-six residential lots, ranging from 568sq m to 896sq m in size, were shown on the application.
Other lots would provide an extension for a street and cul-de-sacs providing access to the residential lots.
The total area of the subdivision would be 4.84ha, at present comprised of flat land with no significant vegetation.
Visual impact of any buildings was expected to be the most significant impact of the subdivision. However, it had been anticipated by the council during the zoning of the land in the district plan.
Overall, effects on the environment would be ''no more than minor'', the application said.
No submissions were received on the proposal as it was not notified.
