Submissions on the proposal closed last week and 33 were received by the council, ranging from support for the concept through to "partial opposition".
A joint submission from the Art Deco Trust and Historic Places Hawke's Bay said the groups supported residential development on the site but believed its historical importance should be acknowledged in the design, and that the public should have access to view Hawke's Bay's inner harbour.
"We believe that failure to take this opportunity to commemorate the site adequately and to exploit the tourist potential of the views over the inner harbour would be deeply regretted in the future," the submission says.
"We propose that a viewing area be created on the roof of one of the planned tower blocks.
"This would provide views, not only over the inner harbour, but to the south, over the Heretaunga Plains and over much of the Napier Hill."
The groups suggest their proposal could turn into a "lucrative operation" if visitors were charged admission to the viewing area. A submission from the Gisborne-Hawke's Bay branch of the Institute of Architects says the hospital site is a landmark for the region, "ranking with Te Mata Peak for visual significance", and that needed to be reflected in the development's design.
Among those to raise concerns about the traffic impacts of the project were the De Jager-Echeverria family, who live in nearby Goldsmith Rd.
The family lodged three submissions, including one in the name of 3-year-old Ekhi De Jager.
"I love walking to Lollipops childcare and to see my friends in the park," his submission said.
"However, I find it very scary because I step straight from my house on to the road, to be able to cross the road to get to the footpath."
His mother, Eneritz Echeverria, said she was concerned the development would result in the street experiencing a significant increase in traffic.
Napier City Council senior planner Paul O'Shaughnessy said it was likely the council would commission an independent study on the visual impact of the proposed development.