Mount Alexander Shire councillors will decide whether to oppose the push for a supermarket and two shops between 90 Forest Street and 2 Duke Street when they meet on Tuesday.

Developers have taken the shire to the Victorian Civil and Administrative Tribunal after it failed to make a planning decision fast enough.

Shire officers have recommended opposing the bid for the supermarket and other shops over the location of one of the proposed car parks, which would sit near Urquhart Street and have space for 60 vehicles.

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"[It] essentially consumes Council's road reserve for a private car park and limits access through a one way left turn from Forest Street," they said.

The officers said the design prioritised the development over the community's needs, "including pedestrians and cyclists within a local road".

Officers acknowledged the developers had added a pedestrian walkway in response to their concerns but said it did not go far enough.

"Pedestrians and cyclists would still need to negotiate cars accessing the car park and the design favours vehicles over other users," they said.

Shire officers also had concerns over native trees that would need to be removed at the Urquhart Street end of the development, storm water drainage and the impact a 60-lot car park could have on a nearby picnic spot.

Members of the public sent in 178 submissions on the supermarket both for and against it during public consultations.

Some objectors raised concerns about multinational companies' business practices, citing broad concerns about wages, farming and any new bottle shops in town.

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Shire officers said those were not relevant considerations for the council to consider, citing previous VCAT decisions discouraging moral judgements.

"Town planning is not a panacea for all perceived social ills, nor is planning decision-making a forum for addressing all issues of social or community concern," a previous decision stated.

"At its heart, planning is about the use, development and protection of land. It has a spatial context that is primarily concerned with the fair, orderly, economic and sustainable use and development of land."

However, officers noted research suggesting the supermarket would have a net community benefit even though it would not be located in the middle of town.

The bottle shop would also be acceptable at Forest Street, officers said.

The supermarket and developers have been approached for comment.

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