The major spending boost follows a busy 2009, in which the $95 million Lee Wharf stage three residential development was completed, parks built and new commercial tenants moved in to Honeysuckle.

The corporation paid consultants $207,915 for work on the Newcastle City Centre Renewal Report.

It recommends building a new bus and rail interchange at Wickham, creating a city university campus and moving the justice precinct.

Chairman Paul Broad said the strategy would generate 11,000 jobs and $1.4 billion in economic activity.

The corporation hopes to work with other interested groups this year to begin work.

Several other developments are set to stimulate activity in the first half of 2010.

A corporation spokesman said work was set to begin on a $130 million WesTrac development at Tomago.

WesTrac, a distributor for Caterpillar machinery, will develop a 66 hectare site as a head office, distribution, workshop and training and apprentice centre supporting more than 300 jobs.

Physical works for stage two of the $110 million remediation of Mayfield's former BHP steelworks site were expected to start early this year, for completion by December 2012, the spokesman said.

Infrastructure projects on the site are also set to start.

Projects in inner-city Newcastle include a fit out for a $6.5 million boutique hotel and restaurant at Lee Wharf.

Repairs on the substructure of the historic 1910 cargo storage shed were completed in 2009.