A complex of 76 townhouses and apartments with a central park would be built on the former Base Hospital site in the heart of the city under plans to be shown to Orange City Council.
Designers have proposed 61 apartments would be built over five storeys facing Prince and Sale streets.
A separate row of 15 townhouses would be spread over three storeys facing Dalton and Sale streets.
They would be connected by a public park featuring walking and cycling paths.
The central housing development would be next door to the just-completed Department of Planning, Industry and Environment offices in Prince Street.
Council will consider the masterplan on Tuesday night. It is proposed the plans would be developed into a detailed document to go on public exhibition before council eventually advertised for a developer to build the housing.
A report to council said the park would contain a playground and entertaining areas to service the residents and the neighbourhood as well as DPIE workers and people at the nearby TAFE building.
"A row of mature trees along the western boundary of the site [would be] maintained as private gardens and communal spaces, expanding the visual scale of the park while providing residents with private open space areas," it said.
The masterplan proposes 111 car parking spaces be provided on the site.
It said the townhouses would have three bedrooms each and their own car parking space.
A mix of one, two and three bedrooms are proposed for the apartments. However, most would have two bedrooms.
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The plans also include a proposal to narrow Sale Street to allow for the parkland to be extended.
It would feature textured paving and traffic-calming measures including landscaped chicanes.
Central parking in the street would be removed as part of the narrowing plan.
The buildings would also feature environmentally-sustainable measures.
That includes the possibility of solar panels and water recycling on site and orientating the buildings to make use of cross-ventilation and reduce the need for air-conditioning.
Developers applying for the work would be expected to show a timeline for the construction process and the likely sale price for the homes as part of their expression of interest.
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