A NEW bypass route, industry estate and revamped city entrance have been recommended for Warrnambool's eastern outskirts by a report looking at easing a critical shortage of industrial land.
Horne Road has been identified as a new north-south corridor to divert heavy traffic away from the city centre.
The draft report by Mesh consultants which has been released for public information will reignite earlier controversy about farmland in the area being rezoned for industry.
Planning Minister Justin Madden who instigated a fast-track selection process for the city and Moyne Shire cut short the process in April after being embroiled in an opposition-led furore about Horne Road farm land owned by Mr Madden's cousin Brendan Howard, a Warrnambool town planner and developer.
Mr Madden then put the responsibility for selection and approval of new industrial land back to the two councils.
Mesh was engaged by the city to prepare an industrial land use review which will be considered as part of a planning amendment process spearheaded by another yet-to-be appointed consultant in conjunction with public consultation.
It estimates there is only enough appropriate industrial land in Warrnambool to last four years and says 70 to 90 hectares is needed to service Warrnambool's projected needs for the next 15 years and estimates 20 to 30 per cent would be swallowed up immediately with existing demand.
The report also says the municipal boundary between the city and shire "highlights an ongoing issue regarding the need for the two municipalities to co-ordinate long-term strategic planning".
Mesh backs a proposal already mooted by the city council for Horne Road to be developed as a link road between the Princes Highway and Wangoom Road.
"Should this road proceed it establishes excellent access conditions for development east of Warrnambool without compromising the central core," it said.
"It is the key finding of this review that consolidation of the eastern growth area offers the most appropriate short to medium term opportunity to introduce additional industrial land supply."
The report recommends establishing a distinctive eastern entrance to the city at the Horne Road-Princes Highway intersection, a new neighbourhood centre on the corner of Horne and Rodgers roads and an extension of Whites Road through to Rodgers Road.
It recommends farmland on the east side of Horne Road be rezoned for larger industrial use in three stages with 64ha in the first and 43ha to the north and south later depending on demand.
Land on the west side of Horne Road would also be rezoned, but restricted to integrated industry and office uses.
It also refers to the nearby rural/residential area of Staffords Road and suggests consideration will need to be given to its proximity to the urban growth boundary.
The full report is available through the city council's website.
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