Caloundra South's Aura to match Gladstone's population

South east Queensland's newest city - a $5 billion venture that will eventually exceed Gladstone city's 40,000 population - began in a cattle paddock south of Caloundra on Thursday.

Aura - the name that developer Stockland have christened their Caloundra South development - spreads along the Bruce Highway from Bells Creek Road north to Caloundra.

A computer generated image of how the Aura City Square will look once it is built.

In the north is the Caloundra Raceway, to the east is the sensitive Pumicestone Passage and to the south are cattle farms and pine plantations.

The Bruce Highway marks the western border of the 2360 hectare city, which speaker after speaker on Thursday estimated would be the size of Gladstone when fully developed.

The development will also include a planned city centre.

Aura was born in a lavish opening - albeit in a grazing paddock - complete with video presentations in a marquee with fairy lights and a classical guitarist.

Deputy premier Jackie Trad noted a bunya pine planted on Thursday - symbolic of the land's traditional Gubbi Gubbi people - was a nice nod to the region's indigenous people.

"We are witnessing the birth of a new city," Ms Trad said. "One of the largest master-planned communities in Australia, but also the largest in single ownership (Stocklands)," she said.

"There is no doubt this will change the landscape of the Sunshine Coast forever."

The development will eventually be home to 50,000.

Aura has a strong environmental pitch with rainwater harvesting and vegetation sifting and treating water before it enters the Pumicetone Passage.

The homes have rainwater tanks.

At the launch of Aura on Thursday, from left, Sunshine Coast mayor Mark Jamieson, Stockland's chief executive Mark Steinert and deputy premier Jackie Trad. Credit: Tony Moore

Aura, Caloundra South

• 20,000 homes over 30 years
• begins close to Caloundra - near the existing Stockland suburb of Bells Reach - and spreads south over 30 years
• of the 2360 hectares, 700 hectares will be replanted as a conservation zone
• Stockland has agreed to build a new road from Caloundra Rd to the Bruce Highway
• Stockland estimates 1700 jobs in the first year and 18,500 over the first 10 years
• by 2023 it will have a city centre and an urban parkland like Brisbane's South Bank
• a state government rail corridor from Caboolture is protected and preserved;
• two sets of infrastructure agreements set out what the Queensland Government, the Sunshine Coast Regional Council and Stocklands will contribute
• 25 education places; schools, pre-schools and education centres
• 20 community facilities;
• Stockland will put forward $1.3 billion towards roads, parks and 200 km of cycleways

Sunshine Coast mayor Mark Jamieson revealed the final agreement to resolve a rumoured $500 million shortfall for Sunshine Coast residents was signed two hours before Thursday's announcement.

Caloundra South project close to green light.Credit: Stockland

"We can look our ratepayers in the eye and say this is not going to cost you anything," Cr Jamieson said.

"In fact it is going to enhance this region in terms of job opportunities, in terms of affordable housing and in terms of choice in liveability."

Bells Creek Rd will run from the Bruce Highway.Credit: Tony Moore

Cr Jamieson said - of the $500 million shortfall that senior council staff identified - $200 million would now be covered by new state government infrastructure charges, $55 million for the new East-West Arterial Road would be financed by the state government; $158 million would be covered by legislation to convert future infrastructure charges.

He said Stockland had also agreed to cover roads, parks, pedestrian walkways, 200 km of cycleways and rebuilding the conservation zone near Pumicestone Passage.

They will also provide a sinking fund to cover maintenance of the lake and rainwater harvesting and $17 million for clubhouses and recreation centres.

Stockland will also provide $15 million to two community benefit funds which can be used outside the development, Cr Jamieson said.

"Those last two are funds that can be used by various groups in the community," he said.

Council receives the rates, while Stockland receives the revenue from land sales from the projected 20,000 homes.

Stockland general manager Kingsley Andrew said the development included rainwater harvesting design and compulsory water tanks for every home.

"It is mandated that every home must have a rainwater tank and we have a 700 hectare conservation zone with a series of wetlands," he said.

Stockland will finance the rehabilitation of 700 hectares of open space in the middle of the Aura development - where Bells Creeks joins - as a conservation zone, he said.

"We will be lining up for grants, but ultimately if we are unsuccessful in obtaining any grants for that rehabilitation, we will be copping it," he said.

The impact on Pumiectone Passage water quality - now rated C-plus by Healthy Waterways - will be monitored and reported monthly to the state government, Mr Andrew said, in response to earlier criticism by the Sunshine Coast Regional Council.

Ms Trad said Caloundra South was an "excellent example of collaboration" to provide affordable and sustainable modern housing in one of Queensland's fastest-growing areas.