Supermarket giant Woolworths was last week announced as the preferred candidate to buy the Crown land site after an expression of interest (EOI) process.

Crs Rob Turner and Mike Cusato want a parliamentary inquiry into the proposed sale.

They believe Port Macquarie-Hastings Council's position on the proposed land sale was misrepresented to the minister, based on December 2013 departmental correspondence.

At that time the department was in direct negotiations to sell the land to Woolworths.

The council in May last year declined to provide its support as reserve trust manager for the then in principle sale of the Plaza car park to Woolworths and later registered its intention to negotiate for the car park purchase.

A subsequent expression of interest to sell the Crown land parcel yielded about 20 responses including submissions from Woolworths and Port Macquarie-Hastings Council.

Cr Cusato called for a parliamentary inquiry which he hoped would shed light about the internal workings of the expression of interest process.

"In my view, [given it was] an EOI for a public land sale of such a prestige block of land in such a prestigious area of the CBD and foreshore, the EOI process was a joke," Cr Cusato said.

Cr Cusato criticised the EOI's timeframe and labelled the EOI a smokescreen.

"I've never been so dismayed by process," he said.

The Department of Primary Industries said all necessary statutory requirements in accordance with the Crown Lands Act had been met in regard to the Plaza car park EOI, and the EOI process was open and transparent.

The panel assessing the applications was overseen by an independent probity adviser.

Cr Turner said he hoped a parliamentary inquiry would lead to the proposed sale to Woolworths being stopped in its tracks and the land's future being reconsidered with any subsequent expression of interest to include a public interest test and land assessment.

He said otherwise the community would end up with a development on the site which was inappropriate for that location and not in the community's best interest.

"The community then has lost an asset," Cr Turner said.

Port Macquarie MP Leslie Williams said she was happy to have discussions with the two councillors.

"If they have unanswered questions, I would have thought the first thing would be to discuss it with your local member and I'm happy to make representations to the minister," she said.

Mrs Williams said she had not received a formal request from the council to meet with her on this issue. She pointed out Woolworths already had approval to redevelop its Food for Less supermarket site.

Woolworths last year unveiled its vision to develop its Food for Less site and the Plaza car park next door.

A development application has yet to be lodged with the council.