Yarm School's relocation to Green Lane could solve some problems but create others, the town council warned this week.
Major questions remained as to whether a move could lessen the area's notorious traffic congestion.
Councillors asked how many homes would be built at the Friarage and preparatory school sites to recoup the estimated £25m paid by preferred bidders Wimpey and Bellway Homes.
Councillors discussed the plan after meeting developers and headmaster David Dunn.
Chairman Coun Liz Marsden expressed gratitude for this but said: "Until we get the plans, it's very difficult to make specific points. Thirsk Road traffic is already busy, so what impact will a new site have? The side roads could still be blocked.
"I also hope the Dovecot's future is secure. The school said something would be done with it years ago and I'd like it to be a priority."
Coun Gwen Porter thought developers would keep the Dovecot as part of the scheme but Coun Philip Addison felt it was mentioned as a sweetener.
Coun Marjorie Simpson said: "The priority is to see what this means for Yarm. If £25m is being paid, how are the developers going to recoup that? How many homes are needed? People say they want the Green Lane site without knowing what's going there. It's silly."
Stockton Council had not yet agreed the plan, partly because the Green Lane site is on designated green wedge land.
Yarm's growth towards Kirklevington and the A19 needed careful consideration, as the identities of Yarm, Kirlevington and Hilton were threatened by urban sprawl and boundary changes.
Coun Addison said: "This is a large proposal for Yarm. This council would be totally remiss if it did not invite Mr Dunn for further discussions. He's willing to meet us.
"People are wondering what the builders will do. David Dunn said they are looking at flats for the Friarage, plus two apartment blocks and two houses at the driveway.
"The prep school will be developed by Bellway Homes but I'm worried the plans could be altered in future. The Aislaby playing fields are on a flood plain, so I don't know what will happen there."
Councillors said much Yarm School traffic came along Thirsk Road from the A19. Would a relocation lead to further congestion at Conyers School and Yarm railway station?
Coun Bob Stephenson said many school buses would still have to use the High Street.
The council had received conflicting residents' comments, plus fresh complaints about Thirsk Road and Goose Pastures congestion, and claims that pupils blocked pavements while waiting for buses.
* See Letters to the Editor: page 26.
* Owing to production problems, we are unable to bring you a list of Yarm School prizewinners this week. We hope to publish a full round-up next week
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