The town planning company has been instructed by Excelsior Properties to obtain outline permission on a 16-acre brownfield site in Bamber Bridge.
The application is provisionally for a maximum of 210 houses, subject to a traffic investigation.
The site, off Wesley Street, is currently occupied by New Mill, and is largely vacant and unsuitable for modern requirements.
Mosaic said the building is not worthy of retention in its current condition and there has been considerable local pressure for redevelopment of the deteriorating premises.
A public consultation exercise will take to place between 4:30pm and 7pm on Thursday 22 November at Bamber Bridge Methodist Church, prior to submitting the application in early December.
The development will be primarily for open market housing, and agents Guest Garsden expect significant housebuilder interest in the opportunity.