Cooma-Monaro Shire mayor Dean Lynch says plans for the CBD upgrade are progressing despite the council missing out on Regional Development Australia (RDA) funding.
Council's 'Lifestyle/Tourism CBD Landscaping Precinct and Enterprise Corridor Project' was shortlisted by Regional Development Australian Southern Inland to proceed with a full application for a $500,000 grant in February.
At the time, Cr Lynch believed council was a strong contender for the funding which would help progress plans for improving footpaths, landscaping in Centennial Park, refurbishments to the band shell and new entrances to town.
The successful projects were announced by RDA last week and council was unsuccessful.
Cr Lynch said it would not have a significant impact on the project.
Work has already began on parts of the plan, with improvements already made to the footpaths approaches to the roundabout at Mack's Corner.
He said work was progressing well and that upgrades to the band shell, improvements around the visitors centre and enhancements to the entrance of town would happen within the next 12 months.
"Council always had money allocated for that projected," he said.
"We have $1.3 million sitting there to spend over three years."
He said if council had secured the funding it would have been spent on "peripheral" works such as a linking footbridge between Norris Park and Centennial Park.
The council has been in consultation with community groups about the plans such as the Cooma Progress Association which has shared suggestions about its proposals for Centennial Park.
The finer details of works will be decided by the councillors in the coming weeks.