A high-level strategy will be prepared to help develop Broadmeadow to "at least five times" the size of the inner city.
City of Newcastle on Tuesday endorsed preparation of a "Broadmeadow Place Strategy" to coordinate growth of the precinct. It includes infrastructure requirements, planning controls and desired outcomes.
It comes after the Herald reported Broadmeadow was among 10 precincts the NSW government had earmarked for its Rezoning Pathways Program. The program will accelerate rezoning assessments to "unlock" housing supply.
The suburb was also identified in the Department of Planning's Hunter Regional Plan 2041 as a "growth area" for a range of affordable and diverse housing options.
The Regional Plan requires a place strategy to be developed before considering planning proposals within the precinct.
Newcastle lord mayor Nuatali Nelmes said the process to grow Broadmeadow needed to be "bottom-up" and led from within the community to ensure the "best outcomes".
"We have the opportunity here, over a very significant land area right in the heart of our city, to actually ensure the delivery of public housing, safe and affordable homes but also very, very importantly ensure that we have the infrastructure in public transport, in public amenity, in sporting infrastructure, in public open space that is commensurate to that type of intensity of development over the next 20 years," she said.
"I would predict that this site would be at least five times what we have seen in the city centre in terms of the complexity and the size of development given the large spatial area.
Newcastle was the only NSW council invited to partner with the NSW Department of Planning and Environment under the Rezoning Pathways Program to deliver the project by June 30, 2024.
Cr Nelmes said there were a number of "sensitive sites" in the precinct including heritage rail, the Jemena gas works, the future Hunter Park sports and entertainment precinct and light rail extension corridor.
The report to council included a draft brochure outlining details about the plans for Broadmeadow.
It says "Broadmeadow's central location, existing and future public transport opportunities, Government owned land and large industrial sites provide an opportunity for urban renewal".
"Hunter Park, the NSW Government's vision for a sports and entertainment precinct, is also located at Broadmeadow which adds to the significant transformation opportunity in this area".
Councillors also agreed to Memorandum of Understanding with DPE setting out the responsibilities of each organisation.
Council plans to publicly exhibit the draft Broadmeadow Place Strategy later this year.
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