The Otago Chamber of Commerce is one of seven entities to launch an appeal against Dunedin City Council's re-zoning of part of the city's harbourside area.
The council has approved changes to revamp the industrial zone by establishing cafes, apartments and green public spaces.
The Otago Chamber of Commerce and five companies have lodged appeals with the Environment Court over concerns about the impact of the zone change on businesses.
The chamber's chief executive, John Christie, says many businesses in the area now cannot expand and will eventually have to relocate, which ultimately will cost the city jobs.
Otago Regional Council has also appealed against the re-zoning.
It is proposing to build new premises in the Steamer Basin area but is concerned that development options could be limited because the site now sits in two different zones.
