Kitimat council has approved the expenditure of $16,000 for phase two of their study on what to do with Minette Bay.
Mayor Phil Germuth says the city was able to combine two lots into one and create a recreation area with direct sea access.
Phase one of the study saw extensive community consultations to find out to what how residents want the area to be developed.
Mayor Germuth says phase two will now look at how any development will impact grizzley bears.
The 191 hectare site is the first direct access to the sea for Kitimat residents after a donation by Rio Tinto Alcan two years ago.