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However, Dunedin City Council acting group transport manager Richard Saunders said there was no plan for that money in the council’s budget for the coming financial year.
Any budget would be finalised in the council’s long-term plan next year.
The project is a collaboration between the council, University of Otago and Otago Polytechnic. Its emphasis is on improving the streetscape of the area, and its pedestrian and cycling routes.
A report on safety and access issues, investment options and approaches to improving the character of the tertiary area was completed by Chow Hill and Flow Transportation in 2014. Sections of Albany St, Clyde St, Union St East and Harbour Tce were identified as priorities.
The upgrade would focus on improved pedestrian and cycling access, establishing the tertiary area as a destination not a through route and the creation of track networks between tertiary campuses, central city, the harbour and Water of Leith.
Councillors will discuss an update of the plan at next week’s meeting.
The draft report estimated ‘‘medium investment level’’ street changes would cost from $5 million-$7 million.
Design costs and project management was likely to cost a further $300,000.
Council acting transport group manager Richard Saunders said there were ‘‘different ways in which costs could be split’’ across design, project management, construction and maintenance.
There was money in existing budgets for minor improvements needed in the area.
Otago Polytechnic had provisionally set aside $1.5 million in its 10-year capital budget plan for the project and the University of Otago’s support of the project was evident in previous contributions, the report said.