THE revamp of Oxford’s run-down St Michael’s Street could see a former drop-in centre for the homeless transformed into a restaurant.

With a row of council-owned properties on the historic street being turned into a hotel, plans have been submitted to renovate the neighbouring Grade II listed Northgate Hall.

Bill’s Restaurants Ltd – which has restaurants in Covent Garden, Cambridge and Brighton – says the renovation will help bring new life to the street, off Cornmarket Street.

The scheme should give a further financial boost to Oxford City Council , with council-owned sites on St Michael’s amongst the latest to go on the market to try to release cash from its £193m property portfolio.

The Northgate Hall planning application proposes substantial internal and external alterations to 18 St Michael’s Street, which is owned by the city council and stands opposite the Oxford Union.

Built in 1871, it was originally a chapel and schoolroom for the United Methodist Free Church.

The site has been vacant since last year. It was last used as the Gatehouse Cafe for the homeless, earlier forming part of the Oxford Lesbian and Gay Centre, which operated from 1991 to 2005.

The application comes after the approval of plans from Sojourn Hotels to turn a row of buildings next door into a boutique hotell.

Bill’s Restaurants want to create a restaurant by next spring for up to 120 diners on the ground floor and mezzanine level, with the kitchen and storage facilities in the basement.