Other shortlisted options were turning the land into a central park area, and enhancing the status quo by retaining existing users.
Commission chairwoman Anne Tolley said the consultation was about providing a clear way forward on the future use of the reserve land, which is currently leased by Tauranga Racecourse, Tauranga Equestrian Sports Association and Tauranga Golf Club.
"The community has made it clear there is no appetite for use of this land for housing. Council and Kāinga Ora, alongside iwi and other partners, will continue to explore other land for housing options in our city.
"The key feedback that has come through is to keep our green spaces green and to ensure we are thinking about the value of open space for generations to come," Tolley said.
The council was advised in November 2021 that Health New Zealand, formerly the Bay of Plenty District Health Board, was interested in using the reserve land as a site for potential health services.
Hauora a Toi Bay of Plenty chief executive Pete Chandler said "the growing Bay of Plenty population and a need to respond to significant seismic issues on our current hospital campus means we need to explore opportunities for future-proofing our current health facilities and services.
"Identifying a new public hospital location and providing better transport access to serve the growing Tauranga and Western Bay area would ensure that planning for the future of the health system is not constrained to the current site."
Chandler said a new public hospital on the reserve land could also potentially open up the current hospital campus site for medium to high-density housing in the long term.
Tolley said commissioners encouraged the community to make submissions on the three preferred options.
"We understand that the study is significant for Tauranga's future. It's also very emotional, especially for the existing user groups.
"Please take part – this can be done via the study's web page, by emailing us, attending one of the community open days during the consultation period that's taking place now, or as part of the hearings process coming up in November."
To see the three options and to make a submission click here.