Eurobodalla Council will advocate for the formation of a co-design committee for the Moruya bypass, in a letter to the state government urging for community feedback to be taken into account.
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A public forum held on Tuesday presented a chance for a number of community members to express their unhappiness with the consultation process and subsequent preferred route outcome.
Moruya business owner Deb Curtis said she did not believe Transport for NSW had undertaken a consultative community process.
"There was poor transparency from the outset with the consultation process and after attending the Transport for NSW information session I still believe this is so," Ms Curtis said.
"It is paramount council understands the importance of protecting the township's commercial interests, because if the bypass is too far away, it will impact businesses when travellers choose not to come through Moruya."
The state government's preferred route for the bypass, represented in orange on the route maps, is around eight kilometres in length and would leave the Princes Highway in a southerly direction just before the North Moruya industrial area.
It would then jut away from the Highway and cross the river about one-and-a-half kilometres east of the current bridge.
It would continue through open fields south of the Moruya River, cross South Head Road near the junction of Congo Road, and rejoin the Princes Highway near the southern end of Noads Drive.
But it appeared the majority of the community was against the 'orange' route, and councillors were urged to advocate for the purple or yellow route instead.
Moruya Bypass Action Group member John Murray said the community had been given little time to consider the options and the project was being rushed through.
"We are concerned the consultation process has not provided any information about future maintenance of the bypass that will impact generations ahead," he said.
"Our community deserves the best outcome from this bypass to protect the amenity and social fabric of our town."
Council officers flagged a final decision would not be made by council but rather the state government who would be in charge of the project.
Councillors agreed to write to the NSW government urging them to take into consideration community feedback of the economic impact of the preferred route and include in their decision making the economic and visual impact of the chosen route on the business and retail sector.
Council will also request a co-design committee is formed, as happened in the Shoalhaven Council area for the Milton-Ulladulla bypass project and for the existing highway and bridge to be kept as a NSW government asset rather than being gifted to the local government area.