Circular Quay's historic Customs House would be investigated as the site for the library - one of many measures to attract a greater mix of people, events and businesses to the city at night and boost annual late-night turnover to $30 billion by 2030.
''Open Sydney: Future directions for Sydney at night'', to go before the council later this month, outlines five goals for the late-night economy for the next two decades. It covers areas including improved transport connections such as light rail, more welcoming public spaces and less red tape.
Cultural institutions and galleries would stay open late as part of an annual ''white night'' event, while property owners would be encouraged to take a leaf out of Vivid Sydney's book with year-round creative lighting displays on building facades.
The draft plan follows research last year that found only 6 per cent of people out in Sydney after 11pm were age 40 or over and midnight crowds in Kings Cross were bigger than those on Pitt Street during morning peak.
It advocates restricting growth in key late-night areas, while opening commercial rooftops, to dining, bars and cinemas, or forecourts and underground train stations to performances.
The plan proposes developing a ''night cities global index'' to rank cities by their night economies - with the goal of earning a top-three placing for Sydney.
It said a 25 per cent increase in jobs in the city's night economy by 2030 would count as a measure of success, as would increasing shops to 40 per cent of businesses open after 6pm.
The executive director of the Sydney Business Chamber, Patricia Forsythe, welcomed the plan but said transport was a key. Public submissions close on August 31, with a final policy due in October.
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