Movable trees, an amphitheatre and an open-air market are among ideas for a revitalised Church Green, pictured above.
Hi-tech lights embedded in the ground could change colour and mood according to the season.
Keighley Shared Church could be floodlit while the adjacent green -- currently an unsightly mound -- would become a public square.
Improvements costing up to £1 million would make the historic area a focal point for the town as well as improving the adjoining car park.
Around £150,000 had originally been earmarked for the project.
But plans spearheaded by Keighley Town Centre Association have become more ambitious.
The association has been working with Keighley artist Shanaz Gulzar on innovative ideas to transform Church Green and the car park.
Three ground plans have been drawn up by Bradford Council's landscape design unit, incorporating various suggestions.
The initial ideas included using the car park solely for open-air markets, building in various types of performance area, and creating a large public space to rival the Town Hall Square. New trees were to be planted either in two straight lines, creating an avenue, or in containers so they could be moved around, creating patterns.
Ambitious lighting schemes called for floodlights on the adjacent Shared Church, lamps that changed colour and shape depending on the mood, and low-wattage LED lights.
The car park would probably have four lanes, with vehicles parked diagonally, similar to buses in Keighley bus station.
One detailed blueprint will now be drawn up incorporating the features that town centre bosses believe are most likely to meet public approval.
Local people will be able to pass judgement on the proposal -- expected to be ready in late February -- before funding is sought from various sources.
The association has been working with various organisations on the plans, including Bradford Council's Keighley Area Committee.
Committee chairman Andrew Mallinson said the plan was now more ambitious, and more costly, than originally anticipated.
He said: "We're now looking at a cost of up to £1 million and doing it in three stages, Church Green, the car park and Low Street.
"We wanted to improve the car parking situation, make it look softer, with better disabled parking near the Low Street shops.
"We looked at the rest of Low Street -- people wanted it to be pedestrianised, and better underfoot."
"There are a number of trees that are worth keeping, near the Market Arms."
Cllr Mallinson said Yorventure, which gives landfill tax money to environmental schemes, had already expressed interest in the plans because of the community involvement.
He said the open-air market idea was likely to be dropped because it would not be used enough -- and would be opposed by local people and Keighley Market traders.
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