The Invercargill City Council has found a "preferred party" to make use of the vacant Kew Bowl site in south Invercargill.
Council chief executive Clare Hadley confirmed it had identified an organisation to take over the vacant land but they were not yet able to divulge who it was, and also what the land would be used for.
"There is a preferred party. There is a period for due diligence and on that basis, I am unable to say anything more until the end of [this month]," Hadley said.
In December last year, the council called for expressions of interest, both from non-profit organisations and commercial investors, for the Kew Bowl site.
The vacant 1.6-hectare piece of land is situated on the east side of Elles Rd, between Scott St and McQuarrie St.
The council brought the Kew Bowl outdoor cycling velodrome from the Southland Amateur Cycling Association in 2006, as a way of assisting with the development of the indoor velodrome at Surrey Park.
The track and buildings have since been demolished with the site now bare vacant 1.6-hectare land.
It has previously been viewed as a possible site for a new housing development, with the council agreeing in January to investigate freeing up vacant council-owned land in a bid to ease the city's predicted housing crisis.
The housing concerns came on the back of the Southland Housing Action Forum revealing an extra 2800 houses were needed in 2019 to fill the current need, and more than 480 houses every year for the next five years to fill future demand.