A proposal to rezone community land in Central that could potentially lay the foundation for future development has caused a public outcry.
However, the developer behind the motion says that he feels let down by those spreading "untrue" information.
Wagga City Council is in receipt of a planning proposal by property management firm Damasa to reclassify a parcel of land, on the corner of Morgan and Docker streets, as operational.
The site is currently used by the Vintage Motor Club as well as a meeting place for community activities.
Damasa director Daniel Donebus said all the proper processes will be adopted and if there is to be the reclassification or sale of public land, it will be put out to tender.
"We are a family that has grown up in Wagga, invested in Wagga and has always consulted and taken a long-term and community-based interest," Mr Donebus said.
"We comply with the rules and this won't be any different.
"It's just been very disappointing to find people starting to circulate information by going door knocking and supplying leaflets to people with information that is completely untrue."
Council's director of regional activation Michael Keys said there is every intention for the land to be put on the open market for anyone to put forward a proposal to purchase it.
"This is probably the initial stage in public consultation, formulating the future vision for the site and trying to enable what planning controls will apply to the area," he said.
"This is more about the broader, strategic permissibilities of what sort of development can occur.
"The proposal is trying to consolidate some of the uses on site, tidy up and provide a better coordinated approach for development ... that will eventually include tidying up some of the parking issues and concerns around the area."
The planning proposal submitted with council contained concept plans of what could be possible if there was demand or approval.
This included opportunities for multi-storey residential, office, retail and car parking developments.
"The proposal that's before council is a flow-on from council's own adoption of urban infill policies; the application is not a development application and no building is being proposed," Mr Donebus said.
Central Wagga resident Anne McGregor wrote in a letter to the council general manager that ratepayers deserve to be more informed.
"The best price achieved [for the parcel land] would allow council to provide the much needed infrastructure to prepare for the growth you are predicting, at the expense of the demise of Baylis Street," the letter read.
Similarly, Marie Nicol raised concerns about further integrating commercial properties with residential dwellings.
"We live around Morundah Street and [council] has allowed people to put in a commercial business ... and you go down there and it's crowded, so the amenity for the local people has gone," she said.
"I just think the whole thing is totally unsuited for the area ... I'm concerned that it's just too much."
Another resident, who wished to remain anonymous, said there has been a lack of transparency shown to ratepayers.
"A lot of people have bought into Central Wagga, or thinking about buying here and if there's a multi-storey development in this area, those people might not want to spend their time or effort coming to Wagga," he said.
Mr Keys said the proposal is out on exhibition and encouraged residents to voice their concerns through submissions, which are open until September 20.
"We can make sure that any future development proposals seek to address those concerns up front and in advance of them being prepared in detail," he said.