Demolition of the vacant Queens Wharf building is likely to start in February after knockdown plans were approved.
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A development application to raze the rundown western wharf building was given the green light on December 19.
The demolition is expected to take several months to complete.
Once the building is knocked down, the City of Newcastle said a range of short-term activations would be implemented to "encourage residents and visitors to continue to enjoy the harbour-front precinct while longer-term planning progresses".
The former Harbourview Function Centre has been disused since it was ravaged by fire in 2020. It has since attracted squatters and been vandalised with graffiti.
The council-owned site includes the popular Queens Wharf Hotel, which is not included in the demolition plans and has a lease for another eight years.
Queens Wharf, which includes the two buildings, two car parks, a public promenade and the Transport for NSW-owned ferry wharf, was constructed as a Bicentennial project and officially opened by Queen Elizabeth II in 1988.
The site previously included Queens Wharf Tower, which was knocked down in 2018.
A City of Newcastle spokesperson said the demolition marked "a critical first step in unlocking the future potential of the iconic waterfront site".
The city received almost 1800 comments and suggestions on how the demolition site should be redeveloped after calling for ideas from the public in August.
Novocastrians supported a diverse and mixed-use precinct with food and dining, retail, arts and culture, night-time activation, open spaces, amenities and recreation opportunities.
Newcastle council called for expressions of interest from prospective development partners in October.
The council is awaiting completion of new ferry offices at Stockton before starting the demolition works.
According to documents lodged with the application, the bike lane, five on-street car parks on Wharf Road and the western Queens Wharf car park will be inaccessible during the demolition.
Access to the ferry terminal will be maintained at all times throughout the works.
The footpath will remain accessible throughout the demolition "as far as possible" and public foreshore access maintained, with staging undertaken to minimise safety impacts to pedestrians.
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