Maitland MP Robyn Parker announced $9.9 million in mining royalties for the project under Resources for Regions.

“This will really make this CBD something special,” Ms Parker said.

The second stage will link the High Street lifestyle and retail precinct known as The Levee with the riverbank. Maitland City Council will knock down three shops and build an archway which will include a viewing platform and a kiosk.

The project is Maitland’s first successful application to Resources for Regions since the city was considered ineligible under previous rounds.

About 2000 miners live in Maitland while about 800 businesses work with the mining industry.

“The impacts on our infrastructure are significant,” Ms Parker said.

“Working with council we put in a successful application.”

Ms Parker made the announcement four weeks out from her political retirement.

“This ticks off on something I said four years ago – rejuvenating the CBD,” she said.

Maitland City Council and its contractor Landscape Solutions plan to have stage one all but complete for the Maitland Taste Festival on Saturday.

Council started work on the $7 million first stage in June 2014 with a low interest state government loan.

“The council’s funding strategy for the project in its entirety was to access council funds, government grants and the money from some surplus land sales,” council general manager David Evans said.

“Our objective was to maximise those grant monies available to us.

“This announcement means we’re able to deliver this project 50-50 without selling any assets and that’s great.”

Mr Evans said work should start on stage two in the second half of 2015.

“We’ve got to complete the ­property acquisitions but we’re well advanced with that,” he said.

Mr Evans said the project would go to tender and that he expected completion in the first half of 2016. 

Since 2011 the state government has allocated $160 million to resources for regions.