If the deal is approved council will be able to build a $374,000 underpass for horses and riders between the properties and the racecourse below a future stage of the Southern Feeder Road.

Under the deal the landowners would agree to reimburse the council for most of the cost of the work. They would pay their share of the costs when they wanted to subdivide their land.

A staff report to council on Tuesday night recommended the plan be put on public exhibition for 28 days.

If there are no objections the plan would progress.

The underpass would go under the SFR near the south-west corner of the racecourse near the end of Ploughmans Lane.

A condition of the proposed Towac Equine Precinct would require each new property has an area set aside for horses.

In March council asked the state government to increase the amount of contributions to be paid by developers, to help fund the project, but this was rejected by Planning Minister Rob Stokes.

The government suggested council negotiate a voluntary planning agreement with the property owners/developers, which has been done.

One property owner has not entered into the agreement.

"The remaining landowners are fully aware that the opting-out by one landowner necessarily increases the cost to the rest, however they remain committed to proceeding with the amendment and have negotiated the attached planning agreement on that basis," the report said.

It said if the planning agreement did not go ahead council would have to use other funds from Orange ratepayers to pay for the underpass.