The former factory was demolished after a fire in 2003
Environmental health officers have been asked to force the owner of the former Tillie and Henderson factory to clean up the vacant site.
Sinn Fein councillor Maeve McLaughlin requested that Derry City Council make the owner, Lord Diljit Rana, clean it up or start build on the site.
Ms McLaughlin said the former factory is a dangerous eyesore and a focus for anti-social behaviour.
Lord Rana said he had longstanding plans to develop the site.
"Just because the site is there doesn't mean it encourages anti-social behaviour.
"Our architect is in constant touch with the local authorities and with planners, and we are planning a comprehensive development," he said.