The council has decided to either sell or lease part of the land that will not be needed.
A council report said it would be appropriate for council to have some input or control on what happens to the vacant site, as it had to work in with the town centre development.
Mrs Staples said the town had called for more retail space, but the council would discuss and consider other projects if they would enhance the main street.
"At the end of the day we really don't know what someone might come along with so we should be open-minded."
The plot between Fitzherbert St and Fox St was left empty after Chung's Supermarket was demolished in 2010.
Trust House abandoned plans to build a large retail outlet on the site, negotiating instead to give the land to council in exchange for land they leased further down the street. This allowed them to create the Featherston Gateway complex.
Featherston Community Board chairwoman Lee Carter said the council's plan to proceed with the development was "bloody awesome".
"The creation of the development is going to set the scene and give Featherston its own identity. I think this is going to be really key for Featherston moving forward."
Mrs Carter said Featherston had been described to her as another "Petone in its first stages of becoming something big".
She was happy the development plans had incorporated historical features such as the new Featherston Camp sculpture.
Mrs Carter's preference for the vacant land, up for lease or sale, was an area that resembled "Melbourne's and Wellington's cafe scene".
"Parents can coffee while children are playing and they'll be right there to watch. People can eat and drink while they watch a mini concert ... they can wander over and see the Cross Creek Society's mini railway and what the Menz Shed has been up to."
Board member Garry Thomas said the new town square would tidy up the town centre and make it more user friendly. It will make the town really buzz."
He said the war memorial, a tribute to soldiers who trained at Featherston Military Camp during World War I, would encourage people driving through the town to stop and explore.