Warrnambool City Council's plan to expand the Grace Avenue car park has been put on hold after a land swap with Jobbins Lane landholders proved of minimal benefit and "not economically feasible".
Chief executive officer Peter Schneider said there was a number of private landholdings between Jobbins Lane and Grace Avenue.
"There are carriageway easements in the area and property owners need to be aware of their rights and responsibilities in relation to access," he said.
"In the past council has endeavoured to negotiate land exchanges that would improve access however at this stage there is no change to existing arrangements."
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