In a written statement, an agency spokesperson said in 2012 the Elizabeth-Takitimu SH2 intersection was identified as a project and initial consultation began.
"The current intersection gets quite congested during peak times, with motorists experiencing long delays on the southbound leg in the mornings and Elizabeth St in the evenings. Signals allow the Transport Agency to better manage traffic flows and waves of vehicles at peak times, thereby reducing delays for all traffic," the spokesperson said.
The Transport Agency was in the process of seeking a contractor for the project and once a consultation date was finalised it intended holding an open day for the community.
The Agency, iwi and Tauranga City Council were in discussions about the flagpole at the bottom of Elizabeth St and the current proposal is for it to be relocated within the new intersection.
Regal Automotive Reconditioners owner Craig Jacobs, who has operated his Glasgow St business for more than 20 years, said he used this intersection numerous times a day.
Mr Jacobs said the main delay was at the peak end of the day when there was a line-up of three to four cars coming from Elizabeth St on to Takitumu Drive.
However, there was an alternative route for motorists to use from Elizabeth St on to Cameron Rd, and the biggest bottleneck headache was at 15th Avenue intersection, he said.
Another Glasgow St business owner, Harry Cavanagh of Harry Cox Panelbeaters 2004 Ltd, said getting out of Glasgow St on to Elizabeth Street can be "pretty hard" at times, particularly between 4.15pm and 5.45pm.
Mr Cavanagh said he hoped the works would improve that situation but would want to know more details how the T-intersection would work before commenting further.
Some other business owners in the area did not have any concerns or were not prepared to comment until they saw the full plans about the planned change.