Dublin city council has begun a survey of Ballsbridge as the first step towards developing a Local Area Plan that will have statutory standing.

The move comes after a motion passed by the council.

"Paying a high price for a site does not automatically mean there should be a skyhigh building on it, " said councillor Wendy Hederman, who proposed the motion. "Residents are justifiably concerned when they hear of plans by developers for tower blocks many times higher than the existing houses."

Dunne has said he wants to build a 32-storey tower on his site, currently zoned residential, in a complex that would include up to 600 apartments, bars, cafes, offices and shops.

"This is too important a site, and its redevelopment will have such a significant impact on the wider area, that planning applications should not be decided behind closed doors by the officials, " Hederman said.

The council has just appointed architecture and urban design firm Urban Initiative to carry out a survey, and a consultation process with local interest groups will start next month. Senior planner Mary Conway said meetings will take place with local stake-holders including AIB, the RDS and residents.

Conway said the council is taking "an overview" of the area. "Obviously, height is one issue but it is one of many, " she said. "We see this an area that needs to be pulled together. It's not to do with a couple of development sites."

Also watching the process with interest will be Ray Grehan of Glenkerrin Homes, who beat off competition from Dunne to pay 171.5m for the 2.05-acre site of the former Veterinary College.