The shortlist includes a ninja-inspired sculpture by Octavio Abundez, a 5m-high perforated steel tree which produces a continuous fog by Matthew Geller, and a never-ending rainbow video installation by Rebecca Gould.
The winning artist will be awarded £5000 prize money as well as £35 000 to build their proposed installation. The competition is being run by art gallery Galerie 8 and property development company Union Development.
The proposal will be judged by a panel including artist Yinka Shobibare and architect Michael Lynas, and will be assessed in terms of conceptual specificity, originality, interactivity and materialisation
An exhibition of the 16 shortlisted proposals will be on display at Grange Gardens from 11-27 March. The winner will be announced at the end of the exhibition.