Far North Holdings has filed a resource consent application with the Far North District Council to develop and subdivide 17 residential sites off Franklin, Baffin and Kellet streets in Ōpua.
An application has also been filed with the Northland Regional Council for an earthworks consent for the Bay of Islands site.
The district council-owned company says no decisions have yet been taken to build anything on the sites, or who the properties would be marketed to.
"At this stage we are simply securing a development option for this piece of land, which has long been vacant and providing less than satisfactory value for Far North ratepayers," FNH chief executive Andy Nock said.
"We are ascertaining what may be acceptable going forward."