The Blueskin Bay facility was flagged for an upgrade in 2005 when a report by Octa Associates identified it as being too small to serve the community.
Construction of a new library was due to start last year, but community opposition to demolishing the 18-year-old building contributed to progress being held up as alternatives were investigated.
However, original plans endorsed by the Waikouaiti Coast Community Board last June are being pushed by the Blueskin Bay Library Redevelopment Trust. It expects to have its contribution to the $989,000 project raised within 12 months, and construction to start in the 2012-13 financial year.
The Dunedin City Council has committed $575,000 to the facility, while the trust has already raised $82,400 of its $331,600 target.
Trust chairman Stuart Strachan said the library would become "more of a community facility" with meeting and entry rooms, public toilets, and movable shelves providing flexible spaces.
The new building, an extension of the community hall, will incorporate the existing library, expanding it to three times its size.
"It will be much more user-friendly.
"I think it's going to be a wonderful thing for the community and for the children. Library services, particularly in hard times, are really a great thing for all concerned," he said.
The plans were revealed at a launch to trustees and those immediately involved in the project, including the principals of Waitati and Warrington schools, recently.
Mr Strachan said those present thought it was a "great idea" and hoped those who had previously expressed concern about redevelopment plans would be "very happy ... and if not with the plans then with the final result".
However, community board member Geraldine Tait said it should not proceed at all and the meeting space was too small to suit the community's needs.
"Library funding should go to town until there are adequate facilities in other areas, such as South Dunedin," she said.
The "enormous amount of funding" to build a library to serve a catchment the size of Blueskin Bay was "a luxury" and "inequitable distribution".
The trust will begin fundraising again within the next two weeks.
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