The state government is keen on utilising its land at the old Tawau Airport at Jalan Utara for mixed development.
Sabah Chief Minister Datuk Seri Mohd Shafie Apdal said the project would involve the construction of the property with commercial value such as hotels and shops besides housing units.
"It will help to boost the local economy," he told reporters when met at the Aidilfitri open house organised by Parti Warisan Sabah for the Tawau and Kalabakan parliamentary constituencies here today.
He revealed that he had discussed with potential investors on developing the land.
Earlier, Mohd Shafie and other Sabah ministers created state history by holding a Cabinet meeting for the first time away from Kota Kinabalu, at the Tawau Municipal Council building.