Outline planning permission for housing is now being sought for a site in Brigg covering 1.6 acres (0.65 hectares).
Proposed for future residential development is land off Engine Street - described in the application as being used for car sales and storage at present.
The location is off Engine Street.
A previous outline application for a larger three-acre site in this part of the town was refused last year by North Lincolnshire Council - one concern being that some of it extended to the south beyond Brigg's development boundary line.
A detailed design & access statement submitted in support of the latest application stresses the land involved is wholly within the development boundary.
It proposes to utilise 'brownfield' land for residential development.
The statement says that as the land is 'brownfield' and within the development boundary, "there are no constraints against the principle of development of this site.
It suggests this scheme "would add to the viability and vitality of Brigg and support many of its struggling services and amenities."
A public consultation period is now under way on the latest application and will end on July 14.
Brigg Town Council will be consulted as part of the planning process.
The North Lincolnshire authority will then decide the application in due course.
If outline permission is granted, a further application can be expected - setting out details of future residential development, including the number and type of properties proposed.
In addition to the design & access statement, the current outline application has been accompanied by other documents including a Flood Risk Assessment & Drainage Strategy.
Engine Street, which runs parallel to Bridge Street (the A18), once had a Victorian ironworks.