Tokorangi includes the area known affectionately as 'the Redwoods', though it is a wider area that includes commercial plantation forest.
CNI Iwi Land Management general manager Alamoti Te Pou said the current system where both organisations had to agree before anything was done in the forest was a problem and having one board to oversee the forest would be a practical way to solve that problem.
The council's sport and recreation manager Rob Pitkethley said the block was of huge significance to Rotorua and "enhancing its infrastructure and visitor opportunities" had been identified as one of the council's top priorities.
He said, at a minimum, the visitor centre was dated and no longer fit for receiving more than 100,000 visitors a year and that Long Mile Rd needed work and there was insufficient parking.
"There is also considerable interest from several small sustainable businesses to establish a presence aimed at enhancing the visitor experience and there is a need to consider how best to accommodate the growing mountain biking users."