"We are dealing with a no-exit road with ever-increasing volumes of traffic. The road is no longer fit for purpose. It needs to happen now as it's dangerous."
A planned intersection at Papamoa Beach Rd and Parton Rd next year would be a major improvement but more needed to be done.
Mount Maunganui ward councillor Steve Morris said Papamoa Beach Rd was designed in a different era and was not adequate going forward, but believed money was better spent developing Te Okura Drive.
"That is exactly why we are building Te Okura Drive because that will be a road built to modern standards with parking on the side, cycle lanes and it will be wider and have the potential to be four lanes in the future. You can't do that with Papamoa Beach Rd as it is really boxed in."
Tauranga City Council strategic planner Andrew Mead said Papamoa Beach Rd was able to cope with current vehicle numbers and it would be "very expensive" to upgrade.
"You have to wonder if that would be a wise use of funds for the long term ... Te Okura Drive will effectively duplicate that function."
Figures from last year showed 8700 vehicles used the road on average each week compared with 7794 in 2013.
Council collected about $300,000 per hectare from developers in Wairakei and $177,000 was used for road upgrades, Mr Mead said.
"As we collect that money, funds become available to build new roading projects or to repay debt on projects that we have already decided to build."
Blue Haven Management chief executive Bill Miller said from a ratepayer's perspective the council was being careful on the allocation of capital and when it was spent to make sure it was getting the recovery from developers through their fees. Ratepayers would have to pick up the debt if council got it wrong, he said.
Papamoa Beach Rd had got busier, he said, but "people were complaining to me before Blue Haven Management had built one house". Its figures showed it had finished 129 dwellings, 54 were under construction and another 61 were in for consent.
Papamoa Four Square owner Steve Duffield said Papamoa Beach Rd was not constantly busy.
"Sure the traffic is huge from 8am to 9.30am and from 4.30pm to 6.30pm but during the day it was like any other road."
Mr Duffield was supportive of Te Okura Drive but he wanted assurance council would get it right.
Papamoa Beach Rd Superette and Papamoa Civic Video owner TJ Shah said a second road out of Papamoa was needed but due to cost "it's one of those questions, do we need it now or is it okay to put it back for another year"?