The Riverside Precinct project has been called a major development for central Wagga but some councillors have raised concerns that the city will be left without adequate visitor accommodation.
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Wagga councillors voted during Monday night's meeting to receive the $6.7 million Riverside Stage 2 Concept Plan to transform the Murrumbidgee River waterfront and move to start two months of community engagement.
Cr Paul Funnell said he was in favour of the plan but felt Wagga was at risk of being left without 45,000 beds annually for visitors due to ending the Wagga Beach Caravan Park lease this year.
"I stood in this chamber six years ago and we were told by a former director that we would have accommodation at Wiradjuri by the time that this came to fruition," he said.
"All the reports say is that we have done some investigation but I have yet to see the results."
Cr Funnell said Wagga was in danger of losing accommodation "within walking distance of the CBD" leaving "the largest inland city in NSW" lagging behind many towns.
"On the one hand we are trying to get more events in Wagga, but we have had events where the entertainers couldn't stay in the city and had to stay in Albury," he said.
Cr Rod Kendall said working on Cr Funnell's calculations, Wagga had added 120,000 beds per year through hotel development.
"This will be one of the greatest developments that has happened to this city but to allow that happen you have got to make some really tough decisions," he said.
Cr Kendall said Albury in the past removed its major caravan park in the middle of the city and replaced it with a "significant open space" in Noreuil Park.
Cr Kendall said the council "had the guts" to make the decision and the accommodation was replaced by other developments.
Cr Yvonne Braid said she agreed with Cr Funnell and said she had heard of people approaching charities due to a lack of accommodation in Wagga.
The concept plan includes a car parking upgrade, additional trees, CCTV and lighting, more open spaces for events and mobile sites for food and beverage sales, and a new playground.
Cr Dallas Tout moved that the period of community engagement be extended beyond 28 days to run April 10 to June 1st due to Easter and Anzac Day holidays.