One problem you may run into is that in most communities the height of any fence you are commonly allowed to install at the back yard is 6'. Check on this. If that's the case here, installing any fence is not going to solve the ugliness problem because their fence (and it is pretty hideous!) is going to stick up above yours.

I don't know if you've spoken to anyone in power at the church, but they probably have some level of interest in being a good neighbor. Considering that many communities also have regulations regarding maintaining property, it might be that you could make a case that they are allowing their property to fall into disrepair and neglect. The fence posts and rails are rusted and the privacy slats are in tatters. Maybe they'd want to replace it, and if they did, you wouldn't find a new chain link fence to be so offensive. Maybe they'd want to replace it with a fence such as the one you like if you split the cost. If anything along these lines is a possibility, it would be good to begin a dialogue with them in order to help steer them in the right direction.

But suppose none of it is and you must find a "plan B." I hate to keep pushing this as though it's the solution to everything, but it is a versatile problem solver, applicable to a variety of situations. And that is what I call the suspended trellis. It's like a fence, but not a fence. It is a series of posts -- arranged like fence posts -- all connected at the top by a continuous chain. On it, one grows a vine(s) that ends up forming solid panels of greenery below the chain and between the posts. Since each type of vine has its own particular character, it's important to grow one that is capable of forming a solid panel ... one that "drapes." It would be different for different parts of the country. As a means for the vine to establish a solid panel network quickly, cords are run from the chain to the ground at 12" intervals, where they are tied to stakes pounded into the ground. The cord rots away, but long before it does, the vine has reached the chain at top and then supports itself. Here is an example of this system, screening my patio area from the neighbor's prying eyes. The flowers are a temporary bonus. The real value is the evergreen leaves.

I'd leave it as it is. Those evergreens soften your yard and give good privacy.

I would follow Yard's recommendation, but use the existing fence (is it really LEGAL?) as the trellis. You could spray paint it a dark rustoleum paint so it is less of an eyesore. Plant an evergreen vine, maybe more than one kind, perhaps ivy or euonymus. I agree that the arborvitae are not the problem and may even be an asset.

It would be a shame to lose the mature greenery along the fence. Looking at a bare fence isn't all that great. I've seen shade cloth stretched along chain link fences before -- I know nothing about cost or durability, but it might successfully camouflage the problem and cost less than a new fence. Link to an example of this type of product HERE.

Thanks for the comments everyone. The arborvitae are really gangly and horrible looking at this point. Each year they are doing less and less to obscure the fence. The entire bottom is completely exposed at this point. When people are at the church they can basically see right into our yard. Also every time we have gotten our house appraised, we always get dinged for being adjacent to the church. I personally like having the church there instead of another house, because 90% of the time it is empty. The arborvitae also grow outward and prevent grass from growing on an entire strip of my lawn.

I don't think the church has any money to do anything about the fence on their side. That same fence also goes along several other houses, and would probably be a huge job to change. i.e. they can't just change the section that borders my property.

Good point about the height restrictions. I'll have to look into that.

I feel like removing the arborvitae will also make the yard seem bigger. I'm just not sure what else to do here. Now I'm doubting my original plan. I just like how the fence looks in my neighbor's yard in that last photo. But I can't really picture how it would look if you still see the chain fence popping up from behind it.

Any other ideas?

Appreciate the suggestions so far!

One more thing I forgot to add that drives us nuts about the church's fence.... when it's windy, trash seems to blow around and collect near their side of the fence, and often makes its way through the fence and onto our yard. Drives us nuts picking up candy wrappers and potato chip bags constantly!

I'm kind of surprised that so many people argued in favor of keeping the arborvitae. To me they look long ago spent, no longer serving a purpose that someone might have once wanted them for. They're not pretty and they hide nothing.

Hominamad, have you ever painted a wall and had it come out looking great ... but then you start seeing how bad the next wall looks because it didn't get painted? And then you must paint it, too! It's pretty much the same principle when you create a lovely new fence, but a crappy old one sticks up behind it. If you drive around town, especially in some crummier areas, I'm sure you will find examples of where two fences of different heights butt up against each other. You can see for yourself that it's not a good look. The solution is to screen all of their fence.