The Damasa development group has a $180 million proposal that could see an overhaul of the Morgan, Murray and Forsyth streets block featuring 180 residential apartments, 13 three-storey townhouses and new retail and office spaces.

Before its final plans can be submitted for review, Wagga City Council must first lay down controls for the site.

Damasa director Daniel Donebus said there are concerns from some central Wagga residents, but this step will make the precinct "the most heavily regulated" mixed use site in the city.

These controls address the concerns raised during an initial community consultation, which included height, parking and green spaces. And if approved by councillors, any future development must adhere to the new rules for the block.

"Once we know what the planning rules are that apply to this site then we can lodge a development application that has every detail of the development - every brick, every blade of grass will be detailed - and again will be put on exhibition," Mr Donebus said.

He said they plan to improve and modernised the site while taking the opportunity to address the existing issues concerning parking and the lack of green space.

"Our motivation is the future of Wagga ... for us to go ahead, we are giving away existing height limits, accommodating the extra parking and agreeing to be bound by additional controls and giving away land that's currently built on for community and green spaces," he said.

It is not enough for central Wagga resident Chris Roche, who has been fighting against the proposal since it was announced.

Mr Roche said his concerns, like those of many other residents, are around the height and shadowing of the development and the potential to exacerbate the existing traffic and parking problems in the area.

He said the controls for this site need to factor in these issues, so that if a development does go ahead it is not at the detriment to the residents who are living around the location.

"The site needs to be redeveloped, and we will support that, but not to the scale they are talking about now because it is just so over the top," he said. "It doesn't meet in with the suburban areas and we are in the middle of suburbia - it's commercial land granted, but it is smack bang in the middle of suburbia."

The submission period is now closed and the council's staff will prepare a report for councillors to make the final decision.