The council has identified a number of issues that stand in the way, from uncertainty caused by historic mine workings underground to its own red tape.

Charlestown has been earmarked as a "regionally important strategic centre" as the council looks to intensify housing, employment, transport, services and recreational opportunities in the city's north-east.

Councillors will vote on Tuesday night whether to accept the changes, which will make development controls less restrictive and more uniform across the CBD, the council's future city precinct executive manager David Antcliff said.

"We have made a small change to the footprint and to some of the density's identified because we have identified Charlestown as an economic centre for the city," he said.

"We want to see it reach its full potential."

A review of the Lake Macquarie Local Environmental Plan has identified nine changes that will be critical to unlock development, promote good quality building designs and a vibrant economic centre.

The council has also raised continuing to advocate for a Charlestown Mine Grouting Fund, arguing historic mine workings under the suburb and the arduous assessment process has created a barrier to growth - as developers shy away from possible risks.

Labor committed to expanding the Newcastle Mines Grouting Fund to Charlestown, Cardiff, Morriset, Glendale and West Wallsend during the federal election, to enable businesses and the private sector to invest in new developments with confidence.

The fund would act as an insurance policy for developers and investors, paying the costs of underground mine remediation once it exceeds a certain threshold, and Mr Antcliff said it will help drive development.

"We're really excited with the current federal government announcement for Charlestown, which will bring some certainty to developers to go and invest in that area," he said.

"Charlestown has a lot of services already located there so co-locating higher density makes sense."

Part of unlocking that higher density will come down to changing some of the zones in Charlestown to a high density residential zone, hoped to better support housing supply and diversity to address the city's crippling housing crisis.

Looking up, the suburb has significantly different building heights - anywhere from two to three storeys up to 16.

The council hopes consolidating the maximum height of buildings allowed on adjoining blocks will make development applications less complex.

It also plans to remove the requirement for new developments in business zones to have commercial or medical ventures on the ground floor, after concerns have been raised about difficulties finding tenants who rely on passing foot traffic in less bustling areas.

Rather than mandating businesses on the ground floor of every new build, the council's proposed changes take a more tailored approach - identifying places where they add to Charlestown's vibrant CBD.

Part of that vision includes building a new public square in the heart of Charlestown, next to the existing library.

The council argues it would leverage existing assets to create a "vibrant, accessible community space".

"A new public square in the heart of Charlestown would also provide a space that can support events in a location that is accesible to a wide range of residents and visitors," a report to councillors said.

"Further investigation of an appropriate design, costs and funding mechanisms for the public square is needed."

The council will consider redeveloping the Smith Street car park and library to accomodate the proposed public square, library, commercial and residential floor space together with a new public car park.

Car-parking costs would also be changed to make them more consistent from street to street.

If the council approves the changes on Tuesday, the revised Charlestown Town Centre Area Plan will go on public exhibition.

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