The MRC has long been pushing to have the 112-hectare site that is currently home to both the Sandown horse and motor racing tracks rezoned from 'special use' to residential.
That would open the door for a lucrative redevelopment of the land, which sits smack bang in the middle of Melbourne's south-eastern suburbs.
The threat of redevelopment has hung over Sandown for many years, but took a step forward last year when the MRC brought this latest proposal to the council table.
According to documents submitted to the council this latest stage will be followed by and "exhibition of the amendment" and "assessment of public submissions" before it hits council again for more planning work.
During last night's council meeting, councillor Rhonda Garad: "What this means is, this will be the opportunity, once it is exhibited, for the community to examine these plans and have their say and we hope that the community takes up that opportunity."
If the rezoning goes ahead, there are plans to demolish the horse and motor racing facilities and turn the area into a new urban development.
The site would include four precincts – East, West, Princes and a Town Centre.
That would cover retail, education and residential, all serviced by the existing Sandown Park train station.
Sandown has been hosting horse racing since 1888 and motorsport since the early 1960s.
Sandown first hosted the Australian Touring Car Championship in 1965 and has since held more points-paying ATCC/Supercars races than any other circuit in Australia.
It's best known for hosting the traditional Bathurst 1000 warm-up, the Sandown 500, but most recently lost its enduro status ahead of the 2020 season.
It has also hosted international events such as the Tasman Series, the Australian Grand Prix (1964, 1968, 1972, 1973, 1976 and 1978) and World Sportscar Championship events in 1984 and 1988.
