The complex has been planned for a residential 1 zone, with half the site located in an urban landscape conservation area (ULCA), on a former playing field beside the Balmacewen Intermediate School.
Summerset Villages Ltd has applied for Dunedin City Council resource consent for a three-storey building, an apartment block, and two-bedroom single-storey townhouses.
The complex would include a bowling green, billiards room, library, cafe, hairdresser and day spa. The Australian owned, New Zealand operated company purchased a 1.9ha block of land in Shetland St for $1.4 million from the school in 2009, and shortly afterwards received Overseas Investment Office clearance.
Summerset had planned to begin construction by the end of this year, but chief executive Norah Barlow said in March increased demand from local families wanting to relocate parents from Christchurch following the earthquake prompted the project to be fast-tracked.
The application noted the non-complying aspects of the development were both height-related.
In an area where the maximum allowable height was 9m, the apex of the apartment block roof was 10.3m, and the main building reached 10.8m.
The company had designed the layout so it had "the least effect possible on the amenity values of adjoining properties".
But neighbour Lisa Alderton, of Chapman St, said she and her neighbours were very concerned about the height.
"That's the biggest issue for all of us."
They had originally been told about a "village", but did not imagine that would include a three-storey building.
"We don't favour the current layout," Ms Alderton said.
Another resident said last night she was concerned about the impact of the development on the sale price of her home.
The residents planned to get involved in the resource consent process to try to keep the height of the building within the rules.
The resource consent application said research had shown the ageing of the population was "one of the greatest issues facing the human race in the 21st century".
For Dunedin, projections showed over-65s would increase from 13.1% of the population in 2006 to 19.9% in 2026, with 9620 more over-65s and 2880 fewer under-65s over that period.
"A further factor to consider is that Dunedin City itself has limited choice in retirement village options, and as a result, Dunedin people are forced to consider Mosgiel as an option."
The application said the project would not be built all at one time.
The townhouses would be built first, and once they were completed and occupied, work would begin on the main building.
The company asked for a 10-year consent, rather than the usual five.
On the ULCA issue, the application admitted there would be "some loss of amenity".
"However, this loss of open space is clearly anticipated by the zoning of the site residential 1, and the fact that new buildings are controlled activities; i.e. consent cannot be refused."
The period in which submissions can be lodged ends on May 23.
Retirement complex
Summerset Villages Ltd
• Two to three-bedroom apartments: 64
• Serviced apartments: 29
• Two-bed townhouse units: 31
• Care beds: 40
• Total average occupancy: 199
• Total staff: 63
• Total car parks: 97
