The developer of land in Outram has been told he can go ahead, but must not build on an area of rural land containing high-class soil.
A resource consent decision means the loss of one lot from a plan for nine in Formby St, near Outram School, the result of concerns about the loss of the soil to farming.
CC Otago Ltd director Craig Horne said yesterday he was unlikely to appeal, and might develop the site soon.
Mr Horne applied for consent to establish a residence on 1.6ha of land at 91 Formby St, and to subdivide 99 Formby St into eight lots along the street frontage with a larger, 2.6ha, lot behind.
The matter went to a public hearing last month.
The plan to subdivide the former market garden was criticised during the hearing by opponents who said it was land that could form part of Dunedin's ''food basket''.
The land features high-class soil they said needed to be protected on the Taieri.
Council planner Lianne Darby told the hearing committee the rural-zoned land should be held as a single entity as part of one of the eight residential dwellings, providing a building block for the rural land, ensuring it could continue as a productive block.
Mr Horne argued it was no longer economically viable to farm the small site, which was in grass and being used for baleage, something that paid only for the property's rates.
In the decision, the committee said high-class soils were a resource under the provisions of the Resource Management Act, and the council was required to provide for their sustainable management.
A residential development on the rural land at 99 Formby St would cause adverse effects more than minor.
The committee ''totally opposes'' residential activity on lot nine, and concluded it was reasonable to require it be amalgamated with one or more of the lots fronting Formby St.
For 91 Formby St, the committee ruled the size of the building platform be made smaller ''for rural amenity reasons'', and to protect views from the street.
The committee accepted any agricultural use was limited because of the small size of the land.
Mr Horne said yesterday he was reviewing his position.
''It was not quite what we were hoping for, but it was a long way there.''
It was unlikely he would appeal, but he was still talking with his solicitors.
Depending on decisions made, work could begin on the site ''reasonably soon''.
