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The organisation's tracks project co-ordinator Tim David told the Otago Daily Times yesterday the piece of land, with spectacular views over Lake Wanaka, would be ideal for mountain bike tracks for families with young children.
It would also ease the pressure on other tracks shared with walkers and dogs, particularly the narrow and busy Outlet Track alongside the Clutha River.
"The mixture between bikers and walkers can be problematic.
"We see this trail as an opportunity to reduce bike movements on that track."
Mr David said much of the mountain-bike track development over several decades had been by and for enthusiasts, but Bike Wanaka was aware of "mums and dads riders who don't have extreme aims".
"There's definitely a need for something that's a little more flowing and relaxed and gentle and doesn't tax you in the same way as riding in Sticky Forest or around Deans Bank.
"We just thought it was a really golden opportunity."
The new reserve is on land covered with kanuka, and already has some walking and biking tracks.
The Queenstown Lakes District Council announced on Wednesday it was seeking the public's view on what uses might be made of the new reserve.
The land was previously owned by Infinity Investment Group, which developed the Peninsula Bay subdivision.
Bike Wanaka is proposing two 1.4km loop tracks starting and finishing at the Infinity Drive trailhead, and a "skills development area".
In its proposal the organisation said the area "provides outstanding views over the lake and great opportunities to ride through open grass spaces interlinked with trails through natural kanuka stands".
It estimates the cost being about $42,000, which it would raise from various trusts and funds.
A separate proposal by Disc Golf Wanaka for an 18-hole disc golf course on the land has also been put to the council.
The group believes it can "co-exist amicably" with hikers, dog walkers and mountain bikers.
It suggests the cost to the council would be $35,000.
The council is seeking feedback on the two proposals, and suggestions for other uses.
Consultation closes on September 28.