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I wonder how much the council value the land The Walks is on? Prime real estate where houses could be worth a small fortune. Park views, walking distance of train station that's straight into London. Developers dream. Ideal for me if money was there to do a good stadium with council backing after selling the stadium land, locate it Greenyard Way, where the road infrastructure is already there. If logistically possible, have the main stand moved over from existing ground, have two terraced ends, and a brand new main stand that has top hospitality facilities. Giving size of land, can even build a few houses on there to recoup some of the money for the council (or go commercial to bring in jobs/investment to Lynn). There's also already a foot bridge going over the trainline so you can walk to the ground from Gaywood area (plus in future big games, links with the schools can see parking used at their places with a small fee going to them so the car network is distributed more away from the actual ground).Logistically ideal, just unsure if council have that area/land earmarked for housing development. Fylde I always see as the template for new stadiums in the top level of non league if you want to go the full works.
As for the car park being laid at Hospital End that would be up to the club not the Council.
These Covenants are not as difficult to get removed as they used to be. If it made the Council a few Bob, and released the Council from their responsibility towards the Walks Stadium, my money would be on it being possible to do.