However, an initiative being floated by some in the arts community could breathe new life into the city centre.

The initiative would see the city’s vacant shops used by not-for-profit organisations and artists in exchange for tax or rate concessions for the property owners.

The idea was raised by former This Is Not Art festival director Marcus Westbury, who saw the initiative when he worked in other cities while he filmed an ABC television series about contemporary art.

With up to 120 buildings around Hunter Street currently unoccupied, the initiative would provide significant space for the community to utilise.

Newcastle City Council and the Hunter Business Chamber both acknowledge the difficulties of a centrally-run scheme to manage the vacant buildings but also praised the idea and said it had plenty of merit.

Chamber CEO Peter Shinnick said the idea was interesting and could breathe new life into the city while future developments were still being planned.

“The city is currently in a transition period and eventually big developments will swallow up all the vacant shops.

“But in the mean time it (the idea) could be a great opportunity to rejuvenate the inner city.

“For building owners with entrepreneurial skills, recent changes to the NSW liquor licenses make it easier for shop owners to gain a license if they provide another service.

“This is the kind of thing they have working in Melbourne; small gallery bars and a café culture.”

Mike Phelps, who lives above his studio on Hunter Street, also said he thought the idea would bring people back to the city and has lent his shop front to artists for the past few months.

His shop is not a commercial space but he has built a mini gallery in the front windows and gives emerging artists a month for each exhibition.

“Artist run space is not a new idea; it works in different places all around the world.

“Another idea is not to use the whole buildings but just the vacant shop fronts.”

To see photos of Mr Phelps shop-front-gallery visit www.shopfrontgallerynewcastle.com

The scheme is being discussed by Mr Westbury and developer GPT, which owns a number of vacant buildings in Newcastle.