A SLICE of land in Oxford city centre could become a new 500-home estate with a hotel.

Oxford City Council is putting pressure on the owner of the eight-acre site, off Osney Lane, to work with them on the plans.

Rail property quango BRB (Residuary), the body created to dispose of remaining British Rail land, is being challenged to settle the future of the site near Oxford Ice Rink.

The council says it could be transformed into a “new community in the heart of the city”.

BRBR is soon to disappear in “the bonfire of quangos” ordered by David Cameron’s government.

But the city council wants to get a planning framework in place before the quango is scrapped, with the Town Hall anxious to replicate the success of its Barton West scheme to create up to 1,200 homes north of Oxford ring road.

The council will propose forming a partnership with BRBR to secure a mixed-use development, including a significant number of affordable homes. They would then bring in a private developer.

The plan will be set out to BRBR at a meeting in two weeks, also attended by a team from the Homes and Community Agency, the national housing organisation.

The site was formerly a goods marshalling yard and its southern boundary fronts the Thames. A neighbouring five-acre city council-owned site, including a coach parking area, would also be added.

David Edwards, city council executive director for regeneration, said: “It is an important strategic site that has been around for ages. But nothing has ever happened.

“We will be encouraging BRBR to work with us to get a planning framework for a high-quality development of between 400 and 500 homes.

“It would be mixed use, with opportunity for leisure and a hotel, with a range of other uses.

“We have been trying to get BRBR to talk seriously to us for a very long time. Now we see there is an opportunity and we would like to move it forward quickly. It’s an area that really needs regeneration. We have to convince BRBR to work with us rather than simply selling off the site. It is really a matter of expecting a public body to behave responsibly.”

A spokesman for BRBR said: “We are working with Oxford City Council to ensure that the development of the site is in keeping with the planning policy for the area.”

Previously, there have been calls for a new concert hall and a new city railway station to be built on the Oxpens site.

Mr Edwards stressed that the development would not extend to Oxpens meadow.

Campaigners working to protect the meadow want it to be given town green status.

David Robertson, deputy leader of the county council, said: “It makes sense to do something with this site. The city council is looking for land for houses.”