The Western Bay of Plenty District Council is to receive a stretch of State Highway 2 from the New Zealand Transport Agency once the Tauranga Eastern Link is complete in late-2015.

Paengaroa roundabout will replace current SH2/SH33 T intersection. The SH2 between here and the Domain Interchange is to be transferred to Western Bay of Plenty District Council post-TEL.

Western Bay Mayor Ross Paterson announced this week a stretch of the highway between the Domain Interchange and the SH2/SH33 intersection (Paengaroa roundabout) will be handed back to council – and planning for the revocation is underway.

But Ross says there are a number of issues to be resolved between the NZTA and council before the revocation is finalised.

'Council wants to ensure that the road is fit for purpose and that council is not accepting an intolerable liability that has to be funded by ratepayers,” says Ross.

'Currently, the road is funded 100 per cent by NZ Transport Agency, whereas when it is revoked it is funded 46 per cent by the NZ Transport Agency, unless a different funding agreement is reached.

'There are significant costs for council in taking over the former highway as a local road and council wishes to minimise costs to the ratepayer.”

Last month, NZTA regional director Harry Wilson addressed Western Bay of Plenty councillors on the revocation process, saying it would be handled carefully, with the key consideration being to make the road suitable for traffic movements generated locally to and from Te Puke.

While the road wouldn't be 'gold-plated”, Harry says it will be 'fit-for-purpose” for its function.

Ross says council staff have been working closely with the NZTA for some time on the revocation, as it's important the council and local community of interest is best served with the result.

Between the Domain Interchange, pictured, and Paengaroa roundabout, the state highway is to be transferred to Western Bay of Plenty District Council ownership post-TEL.

There are benefits from the revocation, relating to the transport efficiencies gained from the TEL and the new opportunities for the former SH2, says Ross.

'When the road is no longer a state highway, the function of the road changes from a through-road to a local road serving local needs, plus it will serve as a free alternative bypass to the TEL toll road,” says Ross.

'Council, with the community, will be able to undertake more urban development in Te Puke and provide a more pedestrian/traffic-friendly environment.''

The legal process of handing over SH2 is done through the Ministry of Transport, based on NZTA recommendations.

Before recommending the revocation of a state highway to the Ministry, NZTA is required to consult with territorial and regional councils, and with Maori (if the revocation affects Maori land).

Once the state highway status is revoked, ownership and control of the road and funding of maintenance, transfers to the territorial authority.