The Pine Hill Rd uphill lane from Great King St could be shifted by about 10m into an area of Town Belt to improve visibility at the intersection.
Dunedin city councillor Jim O’Malley said this would make it safer, but the North East Valley suburb was growing and this would exacerbate traffic congestion.
Grade separation — an underpass or overpass — would be needed at some point, he said.
Realignment of Pine Hill Rd was proposed by NZ Transport Agency Waka Kotahi (NZTA) as part of a package of suggested changes for State Highway1 in Dunedin.
Others included no longer allowing traffic in Duke St to drive straight ahead across Cumberland St, shifting a cycle lane to a shared path alongside Queens Garden and adjusting bus stops.
The transport agency is accepting public feedback until May 23 and it signalled it was particularly interested in how people felt about its preferred option for the intersection of Pine Hill Rd and Great King St.
An earlier suggestion of installing traffic lights was not being taken further because of significant safety concerns about the potential for heavy vehicles coming down Pine Hill Rd to lose traction and fail to stop, the agency said.
An overpass was "not progressed" for reasons that included cost, construction challenges, proximity to the Water of Leith and environmental impact.
Dunedin Mayor Jules Radich said he felt a flyover would be the ideal solution, but the cost would be huge.
Cr O’Malley said the proposal was the best that could be expected, short of grade separation.
Shifting the angle of approach should help a lot, he said.
"That’s the main point of it, that if you’re travelling from Great King St, and then you’re going to shoot across, then you look left and you’ve got a better look up the hill.
"What we need to say is, OK, we accept that this is the interim fix for now, and it gets rid of one of the safety issues, but it doesn’t get rid of the congestion at the intersection, and this itself can be a safety issue."
He expected about 400 houses could be built in North East Valley in the next 10 years.
"It’s going to make that intersection even worse," he said.
"But at the moment, for the meantime, I think that the team in Dunedin have done the best they can with the budget they’ve got."
He had reservations about a flyover, as it would create a visual barrier in the area.
"And lights would have been terrible, because if you’re worried about brake failure anyway, you don’t want traffic stopped on the hill."
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