Popular Thirroul bar and restaurant Jose Jones will lose its permission to operate under a new recommendation from Wollongong City Council.
In documents published on the council's website, council officers say the venue's application to continue operating as a public dining venue should be refused.
Since it opened at the front of the Thirroul Beach Motel, Jose Jones has become a much-loved day and night bar and eatery as well as a live music venue.
However, it has been operating under an expired short-term consent since mid-2017, the council said.
Earlier this year, the operators lodged an application to allow it to continue to trade as a food and drink premises for up to 100 members of the public.
During the public exhibition period of the new application, 10 submissions opposing the bar were lodged by neighbouring residents.
Their concerns were "excessive noise", drunk patrons, and antisocial behaviours including public urination, obscene language and "general disregard for surrounding residents".
Other issues raised by objectors included a lack of adequate parking and "unsatisfactory management of the premises," the council report said.
In their development application, lodged by MMJ Wollongong, the operators argued the popular bar was "socially sustainable", added to the quality of life for a diverse range of residents, made the street more vibrant, and could be managed to limit noise and anti-social behavior.
But in their assessment report, council planners said they believed Jose Jones was "inconsistent with the existing and desired future character for the locality".
They said council planning policies were designed to keep the Thirroul Village Centre as a retail and business precinct. Jose Jones is located just outside this zone.
This meant "intensification of commercial development outside of the retail and business centre undermines the aims of the Precinct Plan," planning officers said.
"The proposal involving patronage of 100 people in a café/restaurant/bar premises that offers live music is not considered to be "low key" and therefore does not contribute to, or complement, the village character of Thirroul," they said.
The council also said there were major issues with the site's flood risk, and that they could not be satisfied that the intensification of use would not " result in risk to life, risk of property [and] vehicle damage".
Recommending the city's independent Wollongong Local Planning Panel refuse the application, the council officers did say they may be able to support a smaller more restricted food and drink premises.
This would cater to a maximum of 65 people with restricted hours, and would require heavier security and an electronic noise limiting device that would disconnect the power if the noise limit was reached.
"However, the use as a café/restaurant as currently proposed is unable to be supported," the officers said.
The council's recommendation, and objecting resident's views, will be considered at a WLPP determination meeting on December 4.
The venue owners will also be given the chance to plead their case, and the panel will then vote whether to support the council's recommendation.
An online petition to save the venue from "a handful of people who do not enjoy the lazy Sunday sessions with a cold beer" had gained more than 2000 signatures by Saturday.