The Whangarei District Council's long-term strategic planning guideline, Whangarei 20/20+, says the site is suitable for street-level retail or commercial units and up to four-storied apartment-style residential units - including the potential for retired living accommodation.
Mr Anderson said the CBD suffered what he called a "population vacuum" after 5pm on weekdays and on weekends, with residents socialising and shopping in the suburbs.
Any re-invigoration of the city centre would require a coordinated expansion of the hospitality and niche retail sectors, supported by an inner-city residential population.
The idea of apartment dwellings seemed foreign to many in Whangarei, but as the population aged and the Town Basin matured, this perception could change, Mr Anderson said.
"Retirees could chose to live close to the heart of the city supported by its social amenities and healthcare provisions."
Bayleys Northland commercial manager Ross Blackmore said the opportunity existed for any new owner of the land to either take a strategic long-term view of the property and develop infrastructure and buildings in line with the council's 20/20+ plan, or push ahead with alternative uses.