The Towns Fund planning proposals aim to boost footfall in Oakengates, while encouraging people to stay longer in the town, by demolishing some buildings and refurbishing existing retail units.
Under the planning application, some physical obstacles between Telford Theatre, Limes Walk – and the main car park – and Market Street, will be removed.
It is hoped this will open up the area to create a welcoming space for residents and for visitors.
Councillor Lee Carter, Telford & Wrekin Council’s cabinet member for neighbourhood services, regeneration and the high street, said: “We will continue to work with and support all businesses impacted by the proposals so they can remain within Oakengates, working with every business on a case-by-case basis to meet their needs.
"We will also continue to offer additional investment into a range of existing vacant shops in the town through our Pride in Our High Street initiative.
“We are also working closely with our Highways Team to look at solutions to assist with parking in the town after it was raised as a concern by a number of businesses."
The plans will "eliminate" poorly-designed buildings with inherent management problems including "eyesore" service yards and buildings that back onto Limes Walk.
The proposals also address why people who visit the theatre don’t stay to shop or eat in the town.
These include opening up an attractive new square as a venue for more events and activities in an effort to increase footfall to Oakengates.
There will also be up to 14 new re-configured ground floor retail units with improved shopfronts and the under-used first floor space will be converted into one and two bed apartments providing new homes in the heart of Oakengates.
The vision for Oakengates Theatre Quarter can be viewed online, alongside a series of FAQs that have been created as part of the consultation process completed in June.
The planning submission can be viewed on the planning portal using the reference number (TWC/2022/0924).