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If you pitch it right, people can get excited for it. How many major national sporting events have a finale outside one of the state capitals? Even when Newcastle make it to the NRL Grand Final, they have to travel to Sydney for a "home" game. The Newcastle race has the potential to be accessible to a new fanbase in the same way as Townsville.
I don't mean will be people care enough to attend, I mean will people care about the major amount of work that will need to be done to create the track. The amount of roundabouts, speed bumps and traffic islands that will need to be taken out will cause traffic nightmares (especially around Watt St, I don't know the area but seems to be a primary road in that area.), also the park where turns 4-6 are situated will need to be pretty much demolished. Will people object to the race due to the work that will be in order? I guess after the first year it will be much easier though, as once the concrete traffic islands etc are taken out, they can be replaced with temporary, easy to replace ones.