How many cooks? How many people eat in this kitchen?

I really think you'd do better with a U shaped kitchen. Put a window in the wall facing the narrow yard and use that short run for your sink. Put your fridge on the end of the run by the basement door. Put your range on the other side of the U. Leave enough space in the floorplan for a 4-top round table.

Thanks so much for taking a look, karen_belle!
Normally there's just one cook, although husb & teenager do some (bkfst, snacks) so perhaps one & a half?
Entertain frequently, so that is why we had the counter there, also my husband wants to have a spot to have coffee in the kitchen, and I thought it would be good to have a landing spot for groceries & stuff. Currently, fridge is exactly where you suggest, kitchen is U shaped (but 4 feet shorter - this reflects a 4 foot addition to the wall near narrow yard.
The sit-in-the-kitchen for coffee is my husband's number 1 request (second is cabinets where the doors aren't falling off, lol)
I'll have to play with where we could stick a table - seems like the only spot would be right in the entryway?

Ah, husbands.

Well, I would shorten the U from what you've shown above, and end it pretty much where you've got your peninsula. That should leave enough room for a small table in the room, without getting in the way of the traffic moving through the doorways at the bottom of the dwg.

I think it would feel more open and less constricted in a U shape. It looks like you have a couple of feet to extend the right side of the U (so the end is about even with the entry at the far right.) So how about putting a couple of pullout pantries at the bottom right of the U, then the ref next to that. Then instead of your narrow pantry shelves at the botttom, that becomes a bench with storage drawers. You have some storage for bulk items in the bench (or table linens, serving dishes, etc.) plus it could be DH's sitting spot. Gives him a place to sit without being in the middle of things.

I actually like the idea of moving the fridge, out of your work zone. If you have teenagers over, it's easier if they're not constantly walking in your prep space. That being said, it might be nice (although I don't know if it's in the budget) to add a fridge drawer, closer to the range. Your idea for a prep sink, sounds like it might be handy, too.

One other question...where are you planning to have the microwave? If you could put that by the fridge (without losing too much pantry storage) is would make a great snack area. Husband, teenager and friends could use the big fridge, microwave, pantry and main sink, without bothering you, in your main prep area. Also very convenient to their seating area. Just an idea :)

I'd move it by the pantries in a heartbeat. No matter what you do, there isn't enough room for a table in this kitchen. I'd also frame in a header in order to recess it into the dining room a bit, and use the bit of "indent" in the dining room where the original depth wall is for a built in china cabinet. Then I'd put a prep sink in the corner between the peninsula and the long counter run. That would have you unloading from storage onto the peninsula and have two prep locations to either side of the prep sink, with just a step and turn to plop things into the oven or stir stuff on the range. I'd also suggest flanking the range with two windows on either side in order to bring in more light into the kitchen.

Thank you so much everyone! Good ideas to play with.
I had thought it was a "no-no" to have the frig out of the work triangle, so if people think it will work, I would rather not have a big lump in the middle of the counter! Apparently we can start (ie get permit) before deciding where the frig goes. The undercounter frig drawer is a good idea, will explore that.
@hollysprings - the indent in the dining room is a built in china cabinet from that side, lol - your mind is in tune with my house! It's very old, has gorgeous wood detail around it plus stained glass in the doors. So that's a space we don't have access to for the kitchen!
The windows to either side of range would only work if the glass was obscure, I don't want to look at the very close neighbors. Builder suggested clerestory windows - a line of windows on the wall above the range to bring in light.