Shropshire Council is looking into ways the land at the back of Cremorne Gardens in Ellesmere can be used.
A planning application was submitted in 2015 by Grays Architecture Ltd to build houses but it was withdrawn.
The land has been left disused but is a pedestrian access point to the gardens.
Ann Hartley, Shropshire Councillor for Ellesmere Urban division, said: "As the planning development on the old yard at the back of Cremorne Gardens has been withdrawn Shropshire Council have been looking at ideas. We are in the process of applying for a European Grant as we do fit a criteria for that grant. There has been an expression of interest but the whole area needs opening up, at the moment it is just a dark and contaminated hole.
"If we could take down the hedge and open it up to a leisure area with craft units keeping in with the Cremorne Garden design and maybe even a cafe it will attract a different clientele. Parents and families will be able to relax while they watch their children play.
"The first priority would be to upgrade the toilets as this is a requirement. This is just an idea and we're very far off but I will keep Ellesmere Town Council informed."
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