The site surrounding heritage listed Coggan's Bakery could be transformed into a bustling shop and bar precinct.
It is currently used as a Wilson parking lot and empty commercial building site.
Plans for a new building would fit between two to three tenants, include a rooftop terrace, parking lot cum basketball court and space for portable food stands.
The plans do not propose to demolish the former Coggan's Bakery.
"The proposed development will provide for new improvements surrounding the heritage listed Coggan's Bakery,' the report said.
"[It will] include the demolition of existing non-heritage listed structures surrounding the Bakery that were added in recent years, with the exception of an original red brick pier and concrete lintel beam to the west."
The Coggan's Bakery building site was granted heritage status in 2011 for its association with the early design of Canberra.
The bakery was established in the 1920s and operated until 1991.
Heritage documents said "Where once there were many buildings of similar construction, it is now one of few reminders of the 1920s origins of the area."
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