Fulfilling a 2018 master plan for the precinct was one of four projects put on a federal budget wish-list in Indi MP Helen Haines' submission.

Wodonga mayor Kev Poulton agreed the site was full of potential.

"Lots of work has been done on that in the past by Wodonga Council and obviously, there's private ownership there as well," he said.

"You have to step the way through it ... (while) having to be respectful to the floodplain and all the rest and the significance of the land.

"There is some some further work being done by council officers to come forward with some recommendations on what the next priority steps are for Gateway Island."

A new marketing campaign to attract a buyer for the privately-owned Totally Fun amusement and theme park, which has been closed since 2020, will soon get underway.

Meanwhile, new life is being injected into the former St Ives Hotel.

The Goods Shed manager Emma Harrison confirmed the building had been purchased and was being renovated.

"There has been a little bit of confusion in the town that the Goods Shed itself is moving, but that is not the case - the owners have purchased the old Three Monkeys Tavern," she said.

"The redesign of the venue is now starting.

"It will be a gastro-pub style, on a level of the Goods Shed that everyone knows so well."

Ms Harrison said the vision that's come together over the past six months included a venue that could host weddings and events, with the aim to be operational in spring.

"It's really exciting to be able to be part of that redevelopment of that venue," she said.

"There will be some major renovations - it will look very different.

"It's exciting to have that area yet potentially come back to life after border crossing closures."

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Dining was a focus of the 2018 master plan, which also recommended enhanced adventure tourism and links to Albury's Murray River experience.

The island has also been canvassed for a holiday park, and while discussions took place in 2021 between Albury and Wodonga councils about purchasing land, that did not eventuate.