Tony Orgee, cabinet member for community infrastructure, said the area would always be a "bottleneck", but described the addition of a new cycle lane as "a very positive step forward".
In addition, the short-cycle businesses concentrated in the unit are more vulnerable to near-term contract delays and terminations as the government grapples with ways of reducing budget deficits.
The Velodrome cycling track will be converted into VeloPark, which, with the addition of a mountain bike course and road-cycle circuit, will be open for community and club sports.