"The change in status from a state highway also brings economic benefit to Te Puke. Development consent off a state highway is very difficult to obtain, however, development off a local road is easier. But this development potential needs more discussion as it could bring safety and speed issues."
Negotiations between Council and the Transport Agency began three years ago for the revocation of the old state highway - a process Ross says has been lengthy and complex in order to make the road appropriate and safe for its new purpose.
"The Transport Agency has a works programme that will be implemented over the next two years. First off the blocks will be the revised speed limits and signage and a key project is the new Welcome Bay Road roundabout which is currently in the scoping and design phase.
"Council is happy with the outcome reached with the Transport Agency and we appreciate the cooperation and patience of their key staff to reach this stage," Mr Paterson said.
It will cost Council about $750,000 annually to maintain the Te Puke Highway, with half of this funded by the Transport Agency and the other half through rates.
The NZ Transport Agency has committed approximately $10 million to a programme of works over the next 24 months to make the road "fit for purpose" as a local arterial road.
The Transport Agency's Bay of Plenty highways manager, Niclas Johansson, says within the package is a $1.5 million budget from NZTA and $1m from Council to help make Te Puke township a more vibrant place.
"This will be spent in the central township, along the north-western approach and also in Waitangi to make these areas more attractive and safer for pedestrians and motorists."
Council will be ensuring all residents and businesses are kept well informed and given prior notice of the planned works over the next two years.
Works include minor changes to speed limits, with the 50km/h and 70km/h limits at the west end of Te Puke being shifted outward to improve the safety of intersections.
The 80km/h section to the east of Te Puke will be reduced to 70km/h to improve the safety at No1 Rd. The 100km/h rural speed limits will not change.
Direction and information signs will change to suit the new layout; roads are being renamed and renumbered - and rehabilitation and smoothing projects will deal with portions of road that are rough, slippery, or likely to fail over the next few years.
Some rural sections of the road will be widened and a wide median will be installed to reduce the risk of head-on crashes.
While the road is predominantly geared for the arterial service of Te Puke, there will be allowance for some inter-regional traffic and overweight and over dimension vehicles that opt not to use the Eastern Link.