PLANS to open a plush bar and restaurant below Oxford’s central post office in St Aldate’s have been submitted by an Oxford University college.

Merton College wants to convert a large underground post office storage area into a basement bar and restaurant, with a new stone entry stair case in front of the post office.

Merton got planning permission for a similar scheme more than three years ago. But with the college unable to find a suitable occupier for the site, the planning approval lapsed.

The college’s estates bursar, John Gloag, said if the scheme is approved conversion work would take between six and nine months, with the end of 2011 seen as the earliest possible opening date.

But the college is still to find someone to take on the lease.

Mr Gloag said: “The design of the bar and restaurant will depend on who ends up eventually occupying the premises.”

There would be iron railings and a gate at the entrance, requiring the removal of cashpoint machines and the provision of a light well.

Craig Middleton, a partner with the land agents acting for Merton, Cluttons, Styles and Whitlock, said: “This remains a fabulous opportunity to create a unique leisure offering in the heart of the city centre.”

The post office was constructed in 1879 to the designs of architect EG Rivers and is viewed as a fine example of Victorian civic Gothic architecture.

The property was much extended to the rear, with access to Pembroke Street created to the south.

Merton College purchased 102-104 St Aldate’s from the Post Office in 2003.

The basement, which extends back 16 metres, was once used as an electrical switching room and machinery space, before becoming a storage area.

The post office plan will be just one of a number of developments expected to add to the vibrancy of St Aldate’s.

A £14m Story Museum is to be created in a Victorian building in Pembroke Street, off St Aldate’s, and aims to attract more than 100,000 visitors a year.

It is hoped the groundbreaking museum will open by 2014, when Oxford is bidding to be Unesco’s World Book Capital.

The global equity firm, the Carlyle Group, plans to create a £22m open-air shopping centre running from St Aldate’s Tavern archway to Queen Street, near the Marks & Spencer store.

The company said it was ready to defy tough market conditions to regenerate a neglected part of the city centre, creating new shops, offices, student accommodation and jobs.

But it has been unable to reach agreement with the city council over how much it should pay into Town Hall coffers under a Section 106 agreement requiring a cash contribution to the area.