Mayor Max Hipkins said the motion was in response to German supermarket chain Aldi purchasing the Captain Stirling Shopping Centre last month.
Council rejected Woolworths' second application to rezone and redevelop the surrounding site in December 2014.
"(In considering development applications) the Development Assessment Panel is required to take consideration of the council's planning framework," Mr Hipkins said.
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READ NOW"We have a big part to play in informing the parameters of what can occur on this site."
Councillor Ian Argyle said the City should save its money and defer the motion for three months.
"This property is all in private ownership, and they (Woolworths and Aldi) are very good at their jobs," Cr Argyle said.
"Let's wait until someone else makes the first move.
"We are here to defend the community. If we do this now, it will be a legal picnic."
Cr Bill Hassell said that if Council did not approve the motion, it would be "rolled over" by the State Government.
"I would be prepared to bet money that Woolworths have already gone to the Planning Minister (for a scheme amendment)," Cr Hassell said.
"If we move on this item as fast as we can, we might just be ready in time.
"We need to take the risk that we might get punched in the chin, because that is our job: to lead the community."