Darren Nicholson operates the Bolton Street public car park and said that did not fill up each day, so could not see a need for the old mall car park to be built to the same level it was before closing in March 2020.

The Herald reported Tuesday that Iris, the company behind the Hunter Street Mall redevelopment, had not reached an agreement with Newcastle council about redeveloping the mall car park site.

The council is demolishing the car park due to structural concerns, and plans to engage a contractor to develop plans for the site, including the retention of a public car park. The demolition is expected to be complete by mid-year.

A spokesperson said the council also remained committed to open up the view corridor and access between the harbour and Cathedral Park for a public space, with a "stairway to heaven" previously floated as an idea.

But Mr Nicholson said with more people working from home - particularly on Mondays and Fridays - and the light rail being nearby, the 380 car spaces that were there before would be too many in a future development.

He estimated 200 might be closer to the mark.

"Even pre-COVID, there was not enough demand," he said.

Mr Nicholson said he would be interested in having a conversation with council about the site, and believed there was potential for other uses on the space as well as parking.

"Something that attracts people," he said.

He believed it would take at least a few years to complete a redevelopment.

Hunter Business CEO Bob Hawes said with all of the change that had occurred in the CBD in recent years, he believed it was time to have a look at the parking situation and how it can best serve patrons and businesses.

He said it may not be beneficial to build a large car park in one place, but instead look at where parking was needed and re-educate people on how to access existing parking.

"There's absolutely no doubt [visiting the city] is a very different experience than even five years ago for people," he said.

"Especially people who infrequently come into the city, but also those who do frequently.

"It's a good opportunity to step back and see if there is room for fine tuning."

A council spokesperson said it would engage with the public about the King Street car park redevelopment "to ensure the community is consulted and has a chance to provide feedback".

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