Wanaka motorists will be consulted later this year about the problematic Brownston and Ardmore Sts intersection, with the design of a new layout "probably" to be completed by 2012.
The New Zealand Transport Agency has set aside $300,000 to redesign the intersection, also known as "Caltex Corner", as a component of the $8.7 billion national land transportprogramme for 2009-12.
Wanaka Community Board chairman Lyal Cocks welcomed the announcement, but said he had yet to learn full details of the NZTA funding.
"We have got to get it scoped up . . . It is a high priority for us."
QLDC transportation manager Denis Mander said it was hoped the design work and even some construction work could be done this year, but most of the council funding for the project was set aside for 2011.
The Queenstown Lakes District Council has set aside about $2.7 million of funding in its 10-year plan for Wanaka town centre transportation improvements, including a two-stage roading project.
Stage one is to improve the Brownston-Ardmore Sts intersection and other improvements along Brownston St to the intersection of McDougall St.
Stage two is improvements on Ardmore St to the intersection with McDougall St.
The project emerged out of a recent public consultation and the council's Wanaka Transportation Study.
The NZTA funding is listed in "category 2", which means it does not have specific funding approval, but funding applications are expected during 2009-12.
It is also regarded as a "probable" project, which means the NZTA "probably has sufficient priority to warrant funding", according to the NZTA.
The Brownston-Ardmore Sts intersection has long attracted criticism from motorists because of the difficulty of turning from Brownston St on to State Highway 84.
Traffic going in to or out of the Caltex service station, as well as converging vehicles from Ballantyne Rd and continuation of Ardmore St (the stretch of road in front of Cinema Paradiso) further complicates manoeuvres at the intersection.
"People avoid that intersection because of the right turn," Mr Mander said.
Other key issues were how to provide better across-town connections down Brownston St and how to improve the Ardmore St area for retail and visitors, he said.
The design consultation process would begin after October's strategy committee meeting, when the Wanaka town centre upgrade strategy should be finally approved, Mr Mander said.
