A new masterplan could see the historic A-listed Murray Royal Hospital building in Perth transformed into 58 flats, with 70 houses built in the grounds.
The application site covers nearly nine hectares of land between Kinnoull Hill and the redeveloped new hospital facilities.
Central to the scheme, which has been lodged on behalf of the site owners, Rivertree Residential, is the conversion of the 1827 hospital which overlooks Perth.
The masterplan, which is seeking permission in principle for the development, would see the main building and the former Elcho and Birnam wards refurbished as flats, and new-build homes constructed on the wider site.
The intention is to retain the B-listed chapel as a communal building for residents.
Vehicle access to the site would be from from Muirhall Road.
The first phase of the development would involve the restoration of existing buildings followed by the demolition of the fire damaged Gilgal building.
The second phase would lead to the construction of up to 70 new houses across the site.
A report by the agents for the owners says: “The proposed masterplan has evolved to respond to the constraints and opportunities across the site, and is considered to achieve development potential whilst protecting the existing sensitive features of the historic hospital building and its landscape surroundings.
“Existing trees, parkland and grassland habitat would be retained and enhanced where possible.”
Modern extensions which are described as being of “low relative significance” would be demolished.
Local Lib Dem councillor Peter Barrett gave the application a cautious welcome but said he would need to study it in detail.
In particular he said he would like the listed hospital buildings, which have been lying empty and have been the focus of anti-social behaviour, brought back into use.
“It is good to see progress towards development of the site,” he said.
“There are concerns in the local community about infrastructure, transport, traffic, congestion, parking, conservation of environmental features and green space, plus air quality. All of these will require careful scrutiny. The phasing and timing of development are crucial issues.
“I will be reading the environmental impact assessment and other documents supporting the application closely before coming to a view.”