It would be really nice if this could happen, currently we have not much option but to relocate to Sydney for tech work.
Newcastle has been searching for a way it revitalise the CBD, and I could see the proposed being a help. The University of Newcastle is developing a new campus in nearby Honeysuckle, with the business school being the first to move.
This could work well with a startup orientated space that can be fed by students from the new campus.
However, as with many things, it needs money and without any tech success stories from and still operating in the area, sourcing investment for this specific use will be hard.
Looks like a joint venture for educational purposes.