Businesses will get some car parks back in the centre of Thames St under a new proposal put to the Waitaki District Council by the New Zealand Transport Authority.
However, the authority (NZTA) wants the council to investigate how it would manage those central parks and to develop a long-term strategy.
Tenders are being evaluated for the major road safety project through central Oamaru between the Severn-Thames-Coquet Sts intersection and Orwell St.
A contract should be awarded by the end of this month.
But the proposal to reduce central car parking in three blocks in the main business area caught retailers out.
They held a meeting with the council and NZTA representatives on August 7 in Oamaru to discuss the project, including loss of car parking.
North Otago Dispensary co-owner Mike Lucey was happy with the change of heart by the NZTA.
"We knew we wouldn't retain all the parking [in the centre of Thames St], but I think most people will be happy now," he said yesterday.
There are now 40 parks in the centre of Thames St between the Thames-Coquet-Eden Sts intersection and Dee St, at the northern end where the centre double rows of trees end.
The initial plan envisaged reducing the number of parks in that section to 18.
The latest plan had only 10 car parks - a quarter of the existing parks.
The major loss was all of the parks between Eden and Ribble Sts, when the initial plan left six of the existing 16 parks.
Between Ribble and Dee Sts, there would have been 10 centre parks.
The initial plan left 12 of the existing 18 parks.
Both plans had no parks between Thames-Severn-Coquet and Eden Sts.
NZTA regional projects manager Simon Underwood said yesterday a proposal it had now put to the council reverted to the initial plan by reinstating eight car parks.
That would mean having 12 parks between Dee and Ribble Sts and six between Ribble and Eden Sts.
Mr Underwood said NZTA was waiting to hear from the council on the latest proposal before taking it back to retailers and others affected by the changes.
It wanted the council to consider how to manage those central car parks.
However, long-term the NZTA did not favour central parking in Thames St for road safety reasons, including vehicles turning suddenly into a park, sudden lane changes and lack of visibility exiting from the parks.