The Blake Street transformation is being proposed by former mayor Kerry Pascoe as part of his $10 million plan to build a six-storey apartment building on the street.

Instead of paying the $104,000 developer contribution fee, Mr Pascoe has offered to spend about $134,000 to "improve the public realm" of the area.

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Wagga City Council agreed to place the proposed planning agreement on public exhibition on Monday, with councillors largely in support of the proposal despite some key concerns.

Works included in the plans include swapping the street's car parks to angled parking, planting six new trees, upgrading footpaths and installing pedestrian islands on both ends.

Mr Pascoe said the project would help upgrade the under-utilised area and make it more appealing for pedestrians, businesses and residents.

"It's a great opportunity to enhance the street so that it's more boutique-style," he said.

"Right now the condition of the footpaths is terrible around here, especially up the northern end, and it's all a bit rough and rugged."

Blake Street is home to the Pot n Kettle Coffee House, Pure Spices Asian Supermarket, Open Mobility and a mix of commercial and industrial lots.

Mr Pascoe owns multiple plots along the street and said the area offers huge potential for development.

According to council's chief operating officer Scott Gray, the developer contribution of $104,000 which could be scrapped if this deal is made would have been used to pay debts.

"This proposed planning agreement is something the developer is offering to do that we otherwise wouldn't be doing with our existing funds anyway," he said.

The street overhaul being proposed by Mr Pascoe includes closing off the Blake Street entrance to the nearby public car park, meaning it would only be accessible by the rear entry on Bardo Lane.

Wagga councillors Dan Hayes and Rod Kendall both raised concerns with how that could impact the side street.

"That laneway is probably not appropriate for increased traffic throughout the day," Cr Hayes said.

Councillors urged members of the community to inspect the proposal and submit their thoughts.

The proposed planning agreement will be on public exhibition from August 9 until September 5.

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