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OPTION D is VicRoads’ preference for the Horsham bypass.
The authority put forward options D and B2 during the planning scheme amendment process to reserve bypass land.
Option D is a variation of B2, with both cutting to the north-east of the city through Riverside.
VicRoads regional director Ewen Nevett said after reviewing more than 80 public submissions received as part of the planning process consultation period, the authority would advocate for option D.
“Option D better accommodates issues raised in submissions including land severance, farming operations and potential upgrades to the Horsham aerodrome,” he said.
Mr Nevett said VicRoads nominating a preference would not affect the planning process, and both options would still be discussed at panel hearings later this month.
VicRoads announced it would exhibit routes B2 and D in March, and nominated B2 as its preference at the time.
The authority last month requested an independent panel be appointed to consider bypass submissions.
Panel hearings will start in the city on October 19, where people who made written submissions can state their case to the panel directly.
The hearings will run until October 23, and then again from November 4 to November 6.
Mr Nevett said the panel would consider all submissions before giving advice to Victorian Planning Minister Richard Wynne and VicRoads.
One Horsham bypass group chairman Jeff Moore said option D was the lesser of two evils.
“Out of those two it is the better one, but both still affect the aerodrome, both cut through Riverside and both go through a floodplain,” he said.
“Option D doesn't cut paddocks horizontally, and it doesn’t go straight across the front of main runway at the aerodrome.
“But it is still infringing on future runway development.”
Mr Moore said he remained hopeful both routes would be scrapped.
One Horsham bypass group wants option 2, which leaves the Western Highway at Dock Lake Recreation Reserve to the south-east of Horsham and bypasses Pimpinio to the north-west.