Sporting fields attached to the old Castlemaine Secondary College in Etty Street could be turned into a new residential area under a plan being considered by the Mount Alexander Shire Council.
The land is adjacent to Wilkie Street and consists of the school football oval and several other vacant areas. It is owned by the Department of Education which also owns the school campus.
Shire chief executive Darren Fuzzard said council wants to ensure the site is developed in the best possible way for the community.
"From our point of view, it is an opportunity for council. That oval area is one of the biggest non-developed pieces of land in inner Castlemaine," he said.
"There has been a lot of people in the community keen to see what is possible for that site. Many people are talking about a desire to create social housing or housing for elderly people in the community.
"What we want to do is work with community to look at the best use for it."
Mount Alexander Shire endorsed plans last year to lease the land from the Department of Education with the intention of sub-leasing spaces on the campus to Workspace Australia and the Castlemaine Hot Rod Centre.
Details of the sub-lease proposal are currently on public exhibition with people able to make submissions until July 31.
"The Department of Education will maintain ownership of the whole of property, with a small proportion used for the high school to provide its own educational opportunities," Mr Fuzzard said.
"But a majority of the buildings will be split between Workspace and the Hot Rod Centre. We believe a partnership with Workspace and our hot rod community has the potential to turn the vacant former college into a thriving community hub."
If the sub-lease proposal is accepted by council, Mount Alexander Shire will seek permission from the Department of Education to begin a strategic planning process.
"(Submission) close at the end of the month with the objective of going to the September council meeting with a recommendation for council's consideration," Mr Fuzzard said.
"If we get to that point, (we will do) strategic work to look at the best use of the land, which is most likely housing. Under the proposed sub-lease, Workspace have the responsibility for maintaining the land until such time as council does strategic work for its redevelopment."
Have you signed up to the Bendigo Advertiser's daily newsletter and breaking news emails? You can register below and make sure you are up to date with everything that's happening in central Victoria.