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But wine tastings and functions for up to 385 people should be permitted, a report from council planning consultant David Whitney says.
The Canyon Vineyard Ltd has applied for resource consent to host the "infrequent" concerts, as well as functions for more than 600 people, at its Bendigo property, which is on 21.25ha of rural resource-zoned land in Chinaman's Tce, off Bendigo Loop Rd, between Tarras and Cromwell.
It also wants to have more than 30 helicopter landings and take-offs a month at its function centre, which is housed in a building which was originally the Big Picture wine-tasting venue at Cromwell and then the Nose Restaurant at Highlands Motorsport Park.
Mr Whitney's report said any landscape and visual effects of the proposal, as well as any effects from the helicopter landings and take-offs, would be less than minor.
However, there were "fundamental issues" with the concerts and larger functions proposed, especially regarding noise, access and parking, Mr Whitney said.
Their adverse effects would be "significant", and could not be "satisfactorily mitigated".
He recommended wine tasting and wine sales activities and "limited scale" restaurant functions be permitted.
He has recommended functions of up to 200 guests, where no bus service is provided, and 385 guests, where a bus service is provided, be permitted.
"For the avoidance of doubt, no concerts are permitted at the site," his recommendation says.
The hearings panel will consider the application and report on October 8.
It attracted 15 submissions, nine of which support it.