Mr McClay said he was seeking support from Transport Minister Simon Bridges next year to unlock a number of traffic bottlenecks in the Te Ngae area.
"This includes upgrades to roundabouts in a number of places and a widening of existing roads as traffic volumes grow.
"I will also be pushing for a new roundabout at the airport which would free up valuable land for development as well as making our roads safer."
He said investors were looking at Rotorua as a viable place for investment now, and roading needed to be improved before that could happen.
"There have been some reservations from locals about the Eastern Arterial and those need to be looked into before any decisions are made.
"In the meantime we have people wanting to invest in our city now and need to upgrade our roads before they can."
Mrs Chadwick said making land available for residential and commercial purposes was a priority for the council.
"We will be looking to ensure good decisions around land use can be made more easily and more quickly. This is part of a rejuvenation of communities in the eastern suburbs of Rotorua and a vital part of the eastern corridor development."
Mrs Chadwick said finding the right solutions for Rotorua's crucial eastern corridor, one of eight strategic corridors linking the Bay of Plenty, would be key to unlocking the district's growth potential and contributing to regional growth.
Both leaders agreed for Rotorua to be a viable place for investment, it was important to make sure the eastern corridor could accommodate growth.
Waiariki MP Te Ururoa Flavell said exploring alternative options for roading in the eastern suburbs had "always been on the table".
"Iwi have always promoted alternative options from the Eastern Arterial. It is not because they are against economic development but they are against it going over their land.
"Time and time again a lot of issues come from lack of consultation with iwi. The mayor has been working to build positive relationships with iwi which bodes well for the future but is a reminder of the importance of involving iwi in decisions that affect them."
Positive Rotorua Environmental Society chairman Nireaha Pirika and Ngati Te Roro o Te Rangi spokesman Paraone Pirika could not be reached for comment.