The Queenstown Lakes District Council has now given notice of its requirement for designation for a public work, proposing to designate three new roads and the roundabout.
The intersection has become known as a crash hot-spot in the Wakatipu: it had an average of 1.2 injury crashes a year between 2004 and 2008.
The New Zealand Transport Authority (NZTA) expected a crash rate closer to 0.3 annually.
The agency said road-safety issues related to the right-turn movements into and out of Glenda Dr, which were exacerbated by high vehicle speeds and growing traffic volumes.
The notice of requirement said the new roads were intended to provide access to the proposed development of the Frankton Flats area.
The proposed Eastern Access Rd would begin at the new roundabout on State Highway 6 and run southeast to connect with another roundabout.
A second road would connect to the roundabout and advance about 360m northeast, parallel to State Highway 6, to link with Glenda Dr.
The third road would replace a short section of Glenda Dr, between State Highway 6 and the second road.
The roading would consist of sections of dual carriageway and two-lane roads and would contain shared pedestrian/cycle paths, the notice said.
The council considered the safety and efficiency improvements arising from the proposed upgrades would "outweigh any adverse effect of a temporary nature created by the construction process".
The proposed roading was first identified in 2005 in the "Future Link" transport and parking strategy, and further developed by the Wakatipu transportation strategy in November 2007, which had been adopted by both the council and the NZTA.
Meanwhile, the NZTA has also lodged a notice of requirement to alter a designation with the QLDC, allowing for the construction of the new roundabout, about 270m southwest of the existing Glenda Dr intersection.
A total land area of 1142sq m is required.
It has previously been reported the NZTA may contribute 53% of the $2.2 million for a small part of the unformed eastern access road from the proposed roundabout, which would eventually connect the highway with Remarkables Park.
