The highly anticipated Wauchope Main Street Plan was adopted by council last week and will now move into the detailed design phase.
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The go-ahead has been praised by Chamber of Commerce president Rob Hamilton, who has urged residents and business owners to "keep the momentum up".
"This is awesome news and there's a lot of positivity around town about the plan.
"It appears to be widely accepted and will potentially offer a massive benefit to the CBD.
"This is a real opportunity for businesses to work together to their mutual advantage."
Mayor Peter Besseling reinforced the chamber's sentiments, stating that it's "terrific to see the plan progress because it represents a huge step forward for Wauchope".
Following a large volume of submissions to Port Macquarie-Hastings Council, Cr Besseling said suggestions will be further explored during the next stage of the CBD overhaul.
The overall vision is to inject personality and create a "lively town that celebrates its river, forest and people".
Key proposals include a reduced speed in the heart of the town to 40km/h, relocation of two pedestrian crossings, marked 15 minute parking areas, Hastings Street intersection improvements, Bransdon Street intersection improvements and re-organised taxi ranks.
Cr Trevor Sargeant said he was a firm believer that Wauchope needed to continue to develop its "distinctness", and the Wauchope Main Street Plan offers an opportunity to do so.
He also supports the town celebrating its deep connection with the timber industry.
"I really applaud the mechanism within the plan to do that by building street furniture and the like from local timbers, manufactured by local people," Cr Sargeant said.
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"I think the plan will hopefully distinguish the Wauchope town area from all the other rural centres throughout NSW and provide for a real tourism and economic boost for the area."
The Roads and Maritime Service (RMS) has committed $300,000 for stage one of the works, which will incorporate design preparation and work to enhance pedestrian safety in the main street.
RMS has indicated that further funding will be available to complete various stages of the plan.
At last week's council meeting, Cr Sharon Griffiths said she had "many, many people through the door about the plan and not all of them were happy about it".
"Although many community members have not agreed with parts of the proposal - with the main concern being parking - it appears that their concerns have not been sent to council for consideration," she said.
"I encourage residents to discuss their proposals and concerns with the RMS in the next stage."
Deputy mayor Lisa Intemanns said "like everyone, I'm delighted that there is actually work happening, not to undervalue the work council has already undertaken (mural map, planter boxes and Port Lane flags)".
"The majority of written submissions were positive, however, there will be the opportunity for further input," she said.
RMS will manage the next stage of community engagement to ensure the community is aware of the results of the plan and proposed staging and funding.