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The Dunedin City Council plans to build a roundabout at the intersection of Main South Rd and Church St in Green Island, and raise three pedestrian crossings in the suburb’s main street, at a cost of about $1.2million.
Construction is set to start in January and is expected to be finished by June next year.
Nine parking spaces would have to be removed.
Greater Green Island Business Association president Antony Duthie was unconvinced the design was a good match with what the area needed.
Mr Duthie, who also owns Green Island Night ‘n Day, said the raised crossings could deter motorists from using Main South Rd.
"Does the extent of what they’ve designed have to be done?"
The Night ‘n Day shop is near the planned roundabout, and Mr Duthie was worried about a squeeze on available parking.
He doubted the council was listening to people in the area.
Across the road at the Green Island Maintenance Centre, Daniel Marsh was worried the new layout could pose problems for heavy traffic accessing a driveway.
City council transport group manager Jeanine Benson said consultation had included a letter drop, online survey and discussions with the Greater Green Island Community Network, affected parties and businesses.
"A roundabout is our preferred option for this intersection to reduce speeds and provide safer traffic movement between Main South Rd and Church St," she said.
"Buses will be able to use the roundabout to U-turn, instead of travelling along existing narrow streets to turn around."
Raised crossings at each of the roundabout’s exits would encourage slower traffic, she said.
Raising the pedestrian crossings opposite Green Island Memorial Park, the Green Island Civic Hall and 197 Main South Rd would improve pedestrian safety by slowing down traffic and increasing visibility, she said.
The final design was yet to be confirmed.
Ms Benson said feedback had resulted in changes to the design.