Despite the formation of a residents group to oppose the Racecourse Road master plan, released in late September, Hume Mayor Jack Ogilvie said the land would not be left vacant, nor would it be used for recreational space.

The master plan has two options for the estimated $290million site: a 409-lot residential development and a 377-lot development.

The Telegraph reported last week that Residents 4 Racecourse Road Recreation (R4RRR) had started a petition to push for more recreational use for the site.

Cr Ogilvie said the petition would "not be tabled", and he rejected selling it outright.

"The process is about asking people to comment on this town development plan. The question isn't whether the land is sold or not, council has already started the process and we've put it out for public comment."

He said the council's proposal would see residential density of eight or nine lots a hectare, which was a better proposal than selling to a developer who would, under new State Government regulation, be allowed a housing density of up to 15 lots a hectare.

Cr Ogilvie said the land would be developed and the money could be used to fund more parking in Sunbury.

He admitted the process could have been better explained, adding the look and feel of the development was still up for discussion. He said there was ample space for recreation at the newly developed site on Lancefield Road.

R4RRR spokesman Brian O'Loughlin said there were a number of concerns from residents surrounding the development site, and from residents throughout Sunbury.

Mr O'Loughlin said the group would make the council aware that the timeline for the consultation process was not adequate, as well as a number of other issues residents had raised about the proposal.

The council held two public consultation sessions, at the Sunbury Agricultural Show on October 10 and at Sunbury Square on October 17. The period for comment on the master plan closed on Friday.