We are in need of some ideas! We are on the last project of the never-ending renovation of a previous heroin house into a home. The backyard needs several components. Here's the background:

We will be building an outbuilding (office) that measures approx 20' long x 10' wide in approximately the position where I've taken the photo that faces the back porch.

We'll be doing the siding and replacing windows on the back of the house, either shingles like the front, or else painted.

We'll be tearing down the rotten back porch and replacing it (most likely) with some sort of covered porch (maybe a real roof with T&G underneath so it's nice looking as you look up). The porch needs to hold a BBQ. We'd like it to be the same level as the back door (currently it is one step below that level), but may have headroom issues.

Down below (on yard level somewhere) we'd like to create a comfortable sitting area where we can eat, relax, etc.

Here is what we're having a hard time dealing with:

1) the majority of the yard is under intense sun for most of the day, especially from 2pm to 7 or 8pm. The area right against the house is the shadiest (but also yuckiest, not appealing) for a sitting area.

2) we need a cohesive way of integrating the back porch, the dining area, and the walkway to the new office. The new office will be slightly raised off the ground, so my ideal is a slightly raised boardwalk that gets you out there.

3) the neighbors to the left of the back porch (as you look at the photo) have built a raised deck that towers over our fenceline so they can see everything happening in our yard. So some sort of privacy screen with plants or structure is ideal.

4) this has to be done in phases because we can't fund it all at the same time. First things first, this porch has got to come down before it literally falls over.

But from there....?

Thanks in advance for any suggestions! Just for style context, this is a 1966 house that we've turned into a cottage-ish look on the exterior. I'll attach a front shot for reference.