The proposal would allow a 2.9 to 3.1km closed road stage around a set course through BWEZ Industrial Park.

Those behind the plans say it will be a chance for the public get close to the action in a safe, family friendly, controlled environment.

Organisers of the rally, which returned to Ballarat in 2017, hope to attract a crowd of 9,000 people to the event overall - several thousand more than the 2018 event. It will take place on August 24 and 25.

They had applied for $20,000 in funds for this year's event, but were granted a smaller amount. For the 2018 event, they received a grant of $7,500.

The application for funding suggested the event could bring in more than $1.7m to the local economy. Council documents show more cautious estimates indicate the event could provide around $727,900.

The event is part of the CAMS Australian Rally Championship as well as the Victorian Rally Championship.

The special stage was mooted for last year's event but could not take place due to a late change in venue from Victoria Park to Ballarat Airport.

The new stage would take place on the Saturday. Other stages would take place in forests around the region on the following day. The funding is contingent on the new stage taking place.

Other matters heard by Council included the 223-strong petition for the sealing of Dowling Road. Two speakers came forward to argue for works to be given the highest priority. Cr Daniel Moloney suggested that a future report should outline a hierarchy of the roads that need to be sealed, and the criteria involved for the sake of transparency.

His thoughts were echoed by Cr Mark Harris who said works needed "to be done on a fair and equitable basis".

The petition was referred for a report at a future council meeting.

Councillors also unanimously approved the second stage of works at Civic Hall, which will include a commercial kitchen, electrical power upgrade, and installation of performance equipment. This year's budget includes $2 million dollars for this next stage of works.

Deputy Mayor Cr Rinaldi praised the work so far, noting the venue had attracted a lot of event bookings. "Civic Hall is a great asset to our city," he said.

A comprehensive plan to manage the development of Ballarat East was approved by councillors last night.The Ballarat East Local Area Plan, which incorporates the area from near Bakery Hill to Woowookarung Regional Park, has been compiled over four years.

The plan will form part of the overall Ballarat Planning Scheme.

Public submissions from the Friends of Canadian Corridor praised the plan but raised concerns over protection of wildlife, particularly koalas.

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