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The Waitati realignment and the relocation of the Blueskin General Store will go ahead with the support of the Dunedin City Council.
A council hearings committee has recommended the New Zealand Transport Agency's (NZTA) notice of requirement to realign State Highway 1 at Waitati be confirmed.
It has also granted resource consent to move the Blueskin General Store from what will become the newly aligned highway to a temporary and later permanent site beside Harvey St.
Commissioners Richard Walls, Cr Kate Wilson and Cr Andrew Noone said the proposal's positive effects would outweigh the negatives, and the relocation would let the store continue to contribute to the social and economic wellbeing of Waitati.
Its support came with conditions.
These included that a community liaison group be established, that adverse effects including dust and runoff be mitigated, and that native plants be used in landscaping.
At last month's hearing, submitters worried the two-year project did not adequately account for bus stops, pedestrian safety, and the visibility of the Blueskin Nursery and Cafe.
There were also concerns the Blueskin General Store would lose business.