But some cycling enthusiasts weren't so happy with the decision, calling it election posturing on the L'Étape community Facebook page.

"There's an election looming, how convenient," the commenter said.

"[Now is a] great opportunity to vote in a council that is more progressive and welcoming to major events."

Citing impacts on local business, residential properties and COVID-19, Shoalhaven councillors agreed to support councillor Greg Watson's motion which also requested the support of Kiama MP Gareth Ward in opposing the bike race organised by Lateral Events.

Megan Peters, general manager of Lateral Events said they were officially notified of the council's decision on Friday afternoon.

"We are currently assessing what it means for the future of the event, and we don't have further information to share for the moment," she said.

Read more: Shoalhaven City Council discourages the L'Etape bike race

In June, Lateral Events cancelled their shorter 80 km 'Ride' component of the race because of the impact it would have had on local communities.

The organisers also submitted adjusted traffic management plans for the 136 km 'Race' event to Shoalhaven council, which included moving Crooked River Road closures back half an hour to open at 9 am and opening Kangaroo Valley Road back up at 10am instead of 12.30 pm.

Glyn Stones, business owner of Kangaroo Valley Safaris said he was cautiously hopeful that Shoalhaven council's decision would have an impact on the race not going ahead.

He said councillors may have framed their decision making around a Kangaroo Valley Community Association (KVCA) email sent to council.

Among other things, the letter criticised the newly-submitted traffic impact statement because Moss Vale Road would be closed for the entire trading day and motorist traffic between Southern Highlands and Shellharbour would be diverted through to Picton Road.

Read more: Shoalhaven council pushes for a Gerringong to Bomaderry shared cycleway

Keith Learn from the KVCA said this traffic impact statement was worse than prior submitted plans "by a longshot" because Macquarie Pass and Tourist Road weren't included in traffic diversion routes as Tourist Road had a 10 tonne limit.

He said a lack of through traffic in the Kangaroo Valley would significantly impact trade in the community.

"That doesn't help us with our passing trade, which is what we normally get on Sundays," he said.

Read more: L'Etape bike race puts their shorter 'Ride' component on hold

The email to council said councillors should be aware L'Etape was owned by a private French media company which also owns the Tour de France.

"They will extract a profit from the race at the expense of legitimate Shoalhaven businesses. Public road assets should not be used for private profit," the email read.

At last week's Ordinary Meeting, councillors were concerned the state government would push for the event in one fashion or another as many of the roads in the route were state-owned.