In December last year, council-appointed commissioners Les Simmons and John Childs approved Plan Change 130, allowing "big box" or bulk retail outlets on the Old Boys site, and said it would provide opportunities for economic growth and employment in Whangarei.
But Mr Yovich and his supporters argue the council failed to adequately address the negative economic effects of the plan change on businesses in the CBD.
They say the decision is inconsistent with stated council policy to maintain and strengthen the city centre as the primary centre within the district for shopping and employment.
NZ Chambers of Commerce Northland CEO Tony Collins said a walk through the inner city would quickly identify many retail outlets that would sit comfortably within a large format retail zone when compared to other towns in the country.
"If these activities are displaced to another location as a result of the proposal and if the shift is of sufficient significance to tip the scale, then it might be questionable whether the existing inner CBD can really be called that if it is based on historical geographic location rather than actual commercial activity."
With a lack of significant attraction in the inner CBD, he said the new bulk retail outlets would not create a strong centre. Mr Collins said the final location of a large format retail outlet would impact on commercial activity, and on future development and investment.
The court has reserved its decision.