CONTROVERSIAL plans to revamp Terang's streetscape have hit a major roadblock with Corangamite Shire Council set to go back to the drawing board.
Council officers will recommend major changes to the plans, including abandoning a contentious angle parking proposal, at next week's council meeting.
The council's chief executive officer Andrew Mason said new costings showed the project had become too expensive to go ahead with in its current form.
"We were working towards spending $1.2 million on the initial stage in early 2013 and in the past week we have received revised costings of $1.9 million," Mr Mason said.
He said that to proceed with the initial stage would commit the council to a number of subsequent stages and a total outlay of about $4 million over multiple budgets, which would put undue strain on future councils.
"Ultimately the project costs have exceeded our planned expenditure due to the amount of work required to reconfigure the road, including the traffic lane, bike lane and parking," he said.
"By not reconfiguring the road, we can bring the cost down considerably.
"We are very keen to do this work but as officers we don't think it is a viable option.
"We will be recommending the redesign. "
Mr Mason said the decision to redesign the streetscape was purely financial and officer's had not been influenced by some angst within the community.
"I'd expect some people to be bitterly disappointed and there will be others who are pleasantly surprised and happy," he said.
"I want to reinforce our commitment to works in Terang.
"We want to see Terang improved.
"This project was an initiative of the former Terang Community Building Initiative (CBI) and as a council we embraced it and planned its construction because keeping our towns vibrant and attractive is in everyone's best interests.
"Unfortunately, as the project has progressed from engagement through to the concept phase and more detailed designs around reconfiguring the roadway, the budget required to implement the plans has continued to grow."
Mr Mason said it would be recommended to councillors that they support a redesign process, including further engagement, but still meet the early 2013 construction schedule.
Ann Harris from the Terang business Blooms n' Box's, who has been a vocal opponent of the planned angle parking and any narrowing of the highway, said she was very pleased with the outcome.
"We've been hoping for this," she said.
"It's a shame it took so long. It's been such an ongoing saga.
"I think the turmoil will pay off in the long run. We've been fighting to get what we deserve."
Ms Harris said the Terang and District Residents and Ratepayers' Association would hold a forum on Sunday at the Terang RSL from 11.30am to discuss the streetscape.