The council purchased the 328ha property for $2.6 million in early 2008, but had planned to subdivide and sell smaller sections of the block for housing, to offset the cost of acquiring the land.
However, councillors at yesterday's annual plan deliberations voted to ask the council's Harbour Cone steering group - headed by Cr Dave Cull - to give further consideration to how best to make use of the block.
The move came after submitters last week urged the council to reconsider plans to sell part of the block.
Cr Cull yesterday said the plan to subdivide and sell part of the property was itself a compromise designed to protect the integrity of the larger block while recouping part of the overall purchase price.
However, a suggestion by consultants that clusters of housing could be developed on subdivided parts of the block, at the end of Bacon St and in other areas, and sold at a profit should be reconsidered, he said.
The revised cost of preparing the sites for subdivision and sale meant it was now possible a profit might not be able to be achieved, and the council should consider other ways of generating income from the land, he said.
That could include investigating the block's potential for guided tourism or other environmentally suitable ventures, councillors heard.
Cr Paul Hudson said submitters clearly wanted councillors to be "very, very careful" in devising plans for the block, and more time was needed to fully consider the options.
However, Cr Bill Acklin warned the council could be opening itself up to further costs if it held on to the property, as the community would eventually want the council to spend more money developing the block for use by tourists and other visitors.
He also questioned whether councillors were entitled to change tack yesterday, after voting unanimously in favour of the original plan to subdivide part of the block and recoup costs.
"I just urge caution," he said.
Mayor Peter Chin said the council had the power to change its original resolution based on new information, while Cr Andrew Noone supported investigating other income options but did not want to see the option of subdividing part of the land ruled out.
Councillors voted to ask the steering group to continue its work, including considering other income options, with a report to be brought back to a future council meeting.
