The site has a capital value of $1.425 million and is used by commuters during the week and the Hamilton Farmers Market on a Sunday.
Hopper director Evans Young said the concept included walkways through the site to link Claudelands Event Centre with the CBD, which was in line with the council's city strategy.
"We are at very early stages where we are just doing a block-up of how things could be done, how things could work and seeking some feedback before we go any further down any particular paths," Mr Young said.
The developer had considered a range of ideas for the site before putting the retirement concept forward.
While it was too early to say how many people the village would house, Mr Young pointed to Auckland, where there appeared to be a new model for high-density retirement villages.
It was also likely the retail development linked to the site would target services for the village's residents.
The firm has already opened one retirement village in Orewa, and has resource consents for two more.
Hamilton City Council events and economic development general manager Sean Murray confirmed that Hopper Developments met staff about developing the site as part of ongoing informal discussions around selling some of the council's property.
The council declined to comment further, but Mayor Julie Hardaker said there had been limited discussions between the two parties about plans for the site and no proposal had been put forward at this stage.
"It's very much in its infancy."
Last month, McConnell Property was given the green light over its plans to buy the council-owned Victoria on the River site and build a contemporary 5000sq m office block with two basement levels of carparking, a cafe and restaurant.