A housing development is being planned for council-owned land adjacent to a Napier site targeted for a new aquatic centre.
Government housing agency Kainga Ora Homes and Communities confirmed it is in discussions with the Napier City Council, but a council spokesperson says that due to commercial sensitivities it is not yet able to discuss plans for the land.
The spokesman did confirm the land is not the site set aside for a potential aquatic centre, should the council decide to build such a complex in the area.
It is "neighbouring" land which has been tagged for residential development for at least 20 years under the District Plan, and it is not part of the Council's 12-stage Parklands zone further to the west, the spokesperson said.
The land and the proposed site in the long-running and controversial aquatic centre debate are in a block bounded by Tamatea and Prebensen Drives and the Hawke's Bay expressway, and includes Purimu Stream.