Stages three and four of the upgrade, focusing on Bond and Water Sts, would create a ''safe, slow-speed environment'' where an emphasis would be put on foot traffic, a planning and environment committee meeting heard yesterday.
The shared-space proposal was revealed by the council on social media last month.
Dunedin City Council urban design team leader Crystal Filep said 14 new car parks would be added to the 40 spaces already available in Bond and Water Sts.
This was as a by-product of additional space from an unused bus stop and the proposed narrowing of kerbs rather than being a goal, she said.
Planners would work with members of the Disability Advisory Group to ensure everyone could use the area, Dr Filep said.
However, the aggression of some Dunedin motorists meant she was reluctant to recommend the area be kerb-free.
''I suppose in Dunedin there is a certain driving culture that is aggressive and I'm, to be honest, a bit reluctant not to have kerbs at all in this shared space because the driving culture here is different and more aggressive than what I have seen in other places.''
Kerbs would offer safe space for pedestrians and a visual cue for motorists.
Details of the shared-space design would be confirmed following further consultation with business owners and residents in the area and when feedback from members of the disabled community was considered.
The design would be subject to council approval before a tender process could begin.
Speaking via a conference call from overseas, Cr Lee Vandervis encouraged the planners to avoid ''the concrete jungle colour of grey'' when finalising the colour of paving in the area.
The planners' proposal was praised by a number of councillors.
Construction on the space could start this month and be complete by June 2018, a report on the proposal said.
