LAND near Colchester’s congested North Station junction is being offered to developers.
The offer has prompted concerns from campaigners trying to convince Essex County Council to improve the surrounding road layout.
The plot, about the size of a football pitch, lies off Clarendon Way.
Developer Modena Homes was granted planning permission to build a three storey, 60-bed care home on part of the land last April.
But the company has gone into receivership before work on the home has started.
Chartered surveyor Whybrow has been asked by the receivers to market the land.
It says the site, on the market for £550,000, is considered suitable for a variety of uses.
The 0.45 acre site is next to the LA Fitness gym and Childsplay day nursery.
It also had permission for 24 flats but that has now lapsed.
Campaigners fighting to relieve traffic congestion around the North Station area voiced concerns a potential development could have on the area.
Dominic Graham, a Mile End Community Councillor who is behind a petition to the county council to act over the problem, said: “I'm naturally concerned at the prospect of more houses and therefore more cars in this part of Colchester.
“Especially as the only way in or out would be along Clarendon Road and via the troublesome roundabout system at North Station.
“Childsplay nursery, LA fitness and Wickes have all supported our www.northstation.co.uk petition and have agreed to display the petition for customers to sign.
“Saying that, the land for sale appears to be relatively small and therefore I'd be interested to see how many properties could realistically fit into that space.
“I'm therefore reluctant to make any knee-jerk criticism of what is effectively a decision to sell a piece of land. After all, if a care home were to be built then the traffic would naturally increase in any event. “However, we will continue to monitor the situation.”
No one acting on behalf of Modena Homes was available for comment.