New councillor Dave Cull will chair the group, which he expects to have a core of about six members with different perspectives, and further input from three or four other people at any one time.
Invitations have been sent out by Mayor Peter Chin to prospective members, but names will not be released until group members have responded.
Yesterday, Tourism Minister Damien O'Connor visited the land on the Otago Peninsula with Dunedin South MP David Benson-Pope, who is pressing the Government to make a grant towards the block, Cr Cull and council general manager community life, Graeme Hall.
Cr Cull said Mr O'Connor seemed receptive to the project and it had been explained that in the long run the council did not want the purchase to be a burden on ratepayers.
The council has not revealed the cost of the farm block, which it secured in January, but it had a rateable value of $2.22 million when it went on sale last year. If the council does not receive any outside funding for the block, it could cost ratepayers $2,730,000 over 10 years.
In the coming year, the net effect of the purchase on rates is estimated at $246,000.
Cr Cull said the group would not call formally for public submissions on what should be done with the land, but it would be open to ideas and would talk with interested parties.
Although there had been unanimity around the council table over the purchase, he was not expecting that consensus would "continue forever, on every aspect''.
One such aspect is likely to be whether parts of the property could be sold, something which has been consistently opposed by Save the Otago Peninsula, the group which led the campaign for the purchase.
Cr Cull said the steering group would be looking two or three years ahead, and its work would include putting ecological protections in place, protecting the land against lifestyle block development opposed by those who supported the purchase, and allowing for public access.
Preliminary talks have begun with parties interested in leasing parts of the land for stock.
It was important that not only people from outside Dunedin could enjoy it.
For people in Dunedin it was "their playground, their background, their place for communing with nature''.
Although the Government is yet to make a decision about a grant to the project, if it did it is likely to be announced before the budget in May.
Mr Benson-Pope said he will also be approaching the Otago Regional Council suggesting it should contribute financially.
It was a regional issue, not just one for the city and the regional council needed to "put its hand up, as well".
The regional council has previously stated it does not have a position on regional parks and that its focus is on providing biodiversity funding to protect habitats.
Cr Cull said he was aware of Mr Benson-Pope's plans to approach the regional council and while the council would be grateful for funds, it would depend on what strings were attached to it.
It was important that the ownership of the block did not become unwieldy.
