The division's debt is mostly due to lending $3 million for the $10.2 million refurbishment and redevelopment of the Oamaru Opera House in 2009.
That was to be recovered from the profits of the Forrester Heights subdivision on Cape Wanbrow, which has not yet proceeded.
The council has been identifying property surplus to its requirements which it could sell to reduce the debt. Some of that has already been listed in an annual plan for public submissions.
On Wednesday, the council will consider a recommendation to sell freehold land at 163-169 Thames St, which has four shops on it owned by one person.
The owner pays the council a rent for the land, which is part of the Oamaru Endowment, of $12,000 a year. The last rateable value of the land was $255,000.
The council's property specialist, Graeme Pointon, said the lessee wanted to buy the land and an offer was expected shortly.
He recommended it be sold to the lessee for not less than the price recommended by a registered public valuer.
Using the proceeds to reduce the property debt was ''a right and proper purpose''.
The same meeting next week will also consider a recommendation council-owned sections in Cirrus Pl, Omarama, next to the airfield, be sold.
The proceeds from that would go to reducing debt attached to the Omarama property portfolio.
The council has 15 already developed sections left in the subdivision, but they have been slow to sell.
Already, they are being advertised by an Oamaru real estate agent for deadline sale by 2pm on December 10.
Mr Pointon said six lots had been sold prior to this for between $92,000 and $110, 000, but Reserve Bank data showed holiday residential sections had been depressed in sales and values since 2008.
Market values of the remaining lots were not known and the current marketing was based on purchasers submitting offers, which the council could accept or decline.
An offer was expected for one lot, and potential purchasers of others were working through their own investigations and costings.
Further offers were expected soon.
He has recommended sales of the sections should be at not less than 95% rateable value.
