It is envisaged that development around Bull Hill park will also feature mixed-sized sections and a small commercial area suitable for a food store and cafe.
The other green space, about 10ha, would be a reserve, running along a ridge heading north-south from Middle Rd and was expected to include limestone walking tracks for public access.
The Middle Ridge area, sitting between the reserve and Bull Hill residential area, will retain its semi-rural character, with section sizes larger than those in the Bull Hill neighbourhood.
Under the proposed plan, the upper plateau neighbourhood on the other side of the reserve will be limited to 20 sections and include significant tree planting.
The fourth neighbourhood, off Breadalbane Ave, will reflect the existing special character of that area.
Mr Lyons is encouraging people to give their feedback on this initial plan.
"The group made up of neighbours and other locals have worked closely with council on this structure plan. We are now looking for broader input before we put together a final plan."
Tukituki MP Craig Foss said it was a good move but encouraged those who were concerned about the rise in housing developments to voice these through the submission process.
"I think it is good news for the district and I am sure council will get the balance right at the end of the day."
Labour Tukituki candidate Anna Lorck welcomed and encouraged the opportunity for people to give feedback on the future landscape of Havelock North.
"It's always exciting when new plans are revealed to create vibrant communities and attract more people to invest and live here."
However Ms Lorck wanted to make sure that as these new housing developments came on stream in Havelock North and also in Hastings there was the infrastructure and amenities to support them.
"We must get the very basics right when planning and preparing for new housing development and supporting existing residents' needs in our local communities."
National Tukituki candidate Lawrence Yule also applauded this proposal. He said the district needed more land and sections so utilising areas of lower quality land in terms of productive capacity, was a good solution.
"I congratulate the council on this as to protect the Heretaunga Plains for long-term agricultural production we are going to need to look to the hills."
The refined plan is expected to go out to the public for formal submissions towards the end of the year.
Depending on this final plan, it is envisaged that the development will provide close to 400 new sections.
The proposed development is identified within the Heretaunga Plains Urban Development Strategy, a regional plan put together to protect the food-growing soils of the region.