The staged proposal over 10 years involves turning the golf course holes north of Country Club Avenue into a residential development, creating nine new holes on disused land next to the course, reworking holes to championship standard and adding a retail space, aged care and retirement living areas.

Coronavirus: All the latest updates on COVID-19 for Tasmania

The company has enlisted the expertise of Tiger Woods golf course designer Beau Welling to lead the redesign. The golfing component of the plans would take priority, while the residential lots would be released in a staged process over 10 years.

The plans are yet to be submitted with council and a dollar figure could not be put on the overall construction works at this stage.

Federal Group has partnered with property developers Kin Capital and Engine Room VM for the project.

Engine Room VM managing director William McGeachie said the idea was to bring the standard of the golf course in line with Tasmania's other premier courses, with the addition of accommodation alongside.

"The real opportunity around the upgrade of the course is that it becomes essentially a hub to the Northern Tasmanian courses," he said.

"So those people on the golf trail, as such, are flying into Hobart, they might base themselves in Launceston, play at the Country Club course, and then you might play Barnbougle or you might go to King Island."

IN OTHER NEWS:

Nine holes will remain open while the course is upgraded.

Early design plans show that the majority of the residential lots would be added across a vast swathe of land at the rear of the casino.

Mr McGeachie said investors were keen to proceed despite the COVID crisis.

"At the moment everyone is still working out exactly what does the future hold, and how are we going to come out of it. We're certainly positive in terms of Australia and Tasmania," he said.

"Because it is a staged development, we've always had the view that depending on where the market sits, we'll stage and release lots as required.

"We're still very confident around property prices."

About 1000 nearby residents will start to receive letters in regards to the proposal in the coming weeks.