King Wharf Developments, partly owned by Errol Stewart, is seeking funding from the City of Launceston council to build a link road at Invermay.
The council is recommended to approve a request of more than $1 million to build a link road between Gleadow and Lindsay streets.
Despite the Invermay Traffic Master Plan not yet being approved, the council's next meeting agenda said the requirement for the new link road was well received during the community engagement and is considered necessary to support current developments.
Since 2018, the council has been considering the report which details the impact new developments will have on traffic in the area.
"One of the most significant potential improvements identified in this report was the installation of traffic signals on Gleadow and Goderich streets, and the construction of a new link road between Lindsay and Gleadow streets, located to the west of Bunnings," the council said.
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The council bought the land off the developers in 2018 to build the road. But decided it would be more appropriate for the developers to complete the works to "provide the best outcome".
Congestion around the Lindsay and Goderich street intersection has increased during the past five years, with the council saying new developments in the area will only increase that more.
"It is likely that this intersection will become critically congested in the next five years," it said.
The council intends for the remainder of the master plan to be finalised in the "coming few weeks".
The meeting will be held at 1pm on Thursday.
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