Plans to modernise the Abingdon Boat Centre with a restaurant with views over the Thames have been revived.

The scheme was dropped four years ago by centre owner Len Baker, following a disagreement over the length of the lease that the owners of Nag's Head Island, the Vale of White Horse District Council, was prepared to grant.

Mr Baker said: "The current lease has another seven years to run but I need long-term security if this venture is to be commercially viable.

"I appreciate the council has to get the best possible terms for a new lease in the interests of council tax payers in the Vale, but I too need to be satisfied before investing a large amount of money in the project."

Mr Baker wants a lease of 75 years. He added: "This building and the valuable riverside services it offers are in dire need of improvement to cater for boat users and the townspeople. A rooftop restaurant overlooking the Thames would be a great asset in this part of the town, along with a new use for the empty Old Gaol building."

In September 2002, planning permission to redevelop the centre was granted.

There were public exhibitions of the plans that include a new chandlery, a wider slipway, a covered space for working on boats with a lifting facility and workshop.

There was widespread support from the public and the town and district councils for the scheme. Local businesses said it would help rejuvenate the Bridge Street end of the town. The project was costed at £1.5m, but is now expected to come in at £2m.

Council executive member for estates Bob Johnston said: "I hope the whole issue can be brought to a successful conclusion for both parties.

"I am unable to go into details because of financial confidentiality. It is an interesting scheme that has received planning permission and would help improve the vitality of this part of Abingdon."