Mr Teahan said if the trust did not make changes to its commercial facilities in Flaxmere now, the future of its businesses "were in question beyond five years".
"To be profitable, we need to have a range of income streams and where we miss out in Flaxmere is not having a restaurant," Mr Teahan said.
In order for the restaurant to be viable, it needed to front the proposed new road which would connect it to the commercial and community centres.
Hastings District Properties Limited company managed the development of surplus council land including the space outside Flaxmere's Waterworld where part of the proposed road was earmarked.
The company's chairman Peter Snelling told the hearing there were plans to redevelop Waterworld and running a new road close by could remove that option.
"We are concerned about the impact the road would have on Waterworld and its future," Mr Snelling said. "It is a [25m] training pool but there isn't a 50 metre pool in the whole district and this may prevent Waterworld from taking an extension out on that area to become a 50m pool.
"It's [a 50m pool] not in any plans. It's not in the aquatic strategy, but these are things that need to be discussed at the time before final commitments are made."
Mr Snelling said the plan change was "a pretty bold vision for the future of Flaxmere" and it should be treated as a long-term project, not something "that's going to happen in the next two years".
He referred to the time needed to redevelop the existing shopping centre, to work with the shopping centre's private owners, the introduction of a full-service supermarket and realigning community buildings so they "didn't have their backs facing each other".
Mr Snelling asked that any decision on roads not be locked in to the plan until the look of Flaxmere's town centre was closer to a conclusion.
Trust House
Flaxmere Licensing Trust delivered $608,000 worth of grants to the community in 2011. During the past 20 years its grants had exceeded $5.3 million.
Trust House was the operating company for the Flaxmere, Masterton and Rimutaka licensing trusts and it owned 25 business units with $88 million in assets.
It began life building and operating bars, restaurants and hotels but now has a range of interests including an estate of 528 houses, three supermarkets joining 11 cafes, restaurants and bars, six bottle stores and two hotels.
New road tagged as vital for Flaxmere
Long-time Flaxmere resident Ken Kibblewhite believes the services of the Flaxmere Licensing Trust "could die" if a new road linking the trust's proposed redevelopment site does not go ahead.
"We have got scenarios saying this might happen or this might not happen, but it is holding back the development of Flaxmere," Mr Kibblewhite said. "If this road doesn't happen, from the trust's point of view, we don't think we can provide services anymore and that would be disastrous for the community."
Mr Kibblewhite made the comments to independent commissioner Bill Wasley who is reviewing a plan to redevelop Flaxmere's town centre. Mr Kibblewhite has worked with the trust since 1975 and is its president. He told Mr Wasley the trust was ready to move ahead with its $1 million redevelopment plans, which could be connected to a new road network through the heart of the town centre.
He wanted to see an end to Flaxmere's "zig-zag road entrance" in favour of one which could provide better access to its community centre. "We have some excellent facilities, Waterworld, the library, the climbing wall is as good as any in New Zealand. People come from all over to use those services."