Dun Laoghaire Rathdown County Council wants land owned by Horse Racing Ireland in Leopardstown to be used to build up to a thousand homes.
According to The Irish Times the local authority has written to the Housing Minister arguing state bodies cannot be allowed to sit on sites "as if they're nest eggs."
The plot at Leopardstown has been valued on the Vacant Sites Register at 66.5 million euro.
It faces a vacant site levy of well over 2 million euro from next year.
