Downhill mountain bike paths and improved trails, signage and visitor facilities will be built in the Majura Pines forest to help boost recreational use of the area.
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Territory and Municipal Services Minister Shane Rattenbury will release a concept master plan on Tuesday, seeking to improve the 87-hectare site long used for mountain biking, horse riding, orienteering and running.
Divided by the 11.5-kilometre Majura Parkway development, the site's pine forest plantation has been in use since the early 1950s. However, roadworks and forestry activities have meant as much as 90 per cent of the informal mountain bike and walking trails have been destroyed in recent years.
Stage one work costing $270,000 will also see the installation of drinking water facilities, informal rest areas and horse riding equipment.
A central trunk loop trail will be built, with work expected to begin this year. A gravel car park accessed from the former Majura Road will be regraded and resurfaced as part of the parkway development.
A recent public consultation period, including public meetings and an online survey, received responses from 680 people and found 82 per cent wanted new trails with varying levels of difficulty built within the pine plantation.
The master plan process was commissioned by ACT Parks and Conservation in November 2013 as construction began on the $288 million road linking the Monaro and Federal highways.
Other improvements requested by the public at Majura Pines included directional and interpretive signage, drinking water points, informal seating, toilets and car parking.
Work is expected to be finished in early 2015.
Majura Pines is made up of two large rural blocks. Neighbouring properties include the Canberra Nature Park, several private leases, an Australian Federal Police facility and the Innabaanya Girl Guides Camp.
The site hosted Australian mountain biking championship events in the 1990s and was also favoured by Australian Tour de France champion Cadel Evans for mountain bike racing.
The current crops of pine trees were planted in 1985 and 1986.
The plan report found the site was large enough to include downhill, cross-country, dirt jump, skill park and pump track areas with sections suitable for intermediate and advanced trails as well as slopes suitable for children and beginners.
Mr Rattenbury said the master plan process would ensure the future for the recreational use of Majura Pines.
"The area is not what is used to be, in the sense that the parkway has gone through the middle of the pine area, which, I think, is a great shame," he said.
"But it remains a great area. The Majura Valley is isolated from the rest of Canberra so once you're over there, you get immersed in it pretty well."
The public survey found 78 per cent of respondents accessed the area by bike and most used the site for mountain biking, running and walking.
Respondents said the area should be used for small-scale and local biking, running and orienteering events but also had potential as a tourism driver for Canberra.
Most respondents favoured a community and volunteer-led group for the management and maintenance of the area's facilities.
"We have worked from the top of the list of people's priorities," Mr Rattenbury said.
"I was really amazed at the level of community enthusiasm during the consultation phase. I knew it was a popular area but people were really engaged and are looking for news of what was planned."