"This will cause some angst particularly with some people who have interest, real or imagined, in certain properties around the district, but let's let the process happen," Mr McDouall said.
Proposed land sales by council land have sparked a backlash in the past.
In 2013 the council approved the sale of part of the Handley Street Reserve but neighbours collected 800 signatures opposing its sale.
Councillor Helen Craig urged the public to provide "quality feedback" in a consultation period which starts in December.
"The public do need to be aware that council has got huge financial constraints," she said.
"We do need to be practical and sensible about what we are retaining and what is surplus to our requirements. It's not a not a time that we can have everything we want."
The draft plan also set guidelines around how council manages investments and includes a cap of 33 per cent of each investment portfolio which can be invested outside Whanganui.
"The real key here is to get business, iwi and council talking and driving Whanganui forward because we are constantly getting people dipping our toes in our economy and we've got to make sure they dive on in," Mr McDouall said.
"This is a tool to get there."
Public consultation of the proposed plan will run from December 15 to February 16 and people can have a further say during the council's long term plan consultation in 2018.
For more information visit www.whanganui.govt.nz.
