THE "green shoots of recovery" can be seen in Newcastle's city centre, two years on from the release of a long-term plan to strengthen the area, a council report says.
But significant challenges to the advancement of the city remain, particularly vacant and deteriorating buildings.
Newcastle City Council has issued a report on progress it says has been made implementing the Newcastle City Centre Plan.
The plan, which the council and the State Government produced in 2008, sets a target of 10,000 extra jobs and 6500 new residents by 2031.
In the report, the council said the overall number of vacant buildings, shop fronts and lots in the city centre had decreased from 166 in January last year to 145 that June.
The report outlined the reopening of Hunter Street Mall and increased activity brought about through the Renew Newcastle initiative, which set up artists and entrepreneurs in vacant shop fronts.
It said there were fewer approved development applications in 2009, compared to recent years, which reflected global economic conditions.
The report hinted at proposals for the civic precinct soon to be unveiled.
The council had been "negotiating with relevant parties on the future use of properties in the central civic area".
"The negotiations are at an advanced stage and an announcement is expected by mid-2010," the report said.
Both the State Government and the university have been looking at the area as part of plans for a legal precinct and city campus, and the Government is known to be negotiating for some of the land.
The report was less definitive on progress made with the plan's commitment to improve public transport.