The plans, submitted by Denwis Ltd - of which Mill owner and Blackpool FC majority shareholder, Owen Oyston, is a director - include 259 bedrooms, a 96-space car park, communal areas, a café, gym, and reception area, as well as external alterations.
A spokesperson for the planning application said: “Oyston Mill has been largely vacant for many years and the proposed conversion will inject new life into the site.
“The development will increase the range of quality student accommodation available to expand choice and maintain the high standards of the University which is only a ten minute walk away.”
Worries have been raised through a public letter of concern, stating that the proposals would ‘result in noise and disturbance to local residents’ and bring increased traffic demands.
Interdec Fireplaces have operated from the Mill for 32 years. Manager Dave Wilson said: “We’re not sure what’s happening because not a lot is forthcoming.
“I have been here for 30 years; it’s a bit unknown as to where our future lies.”
Mr. Wilson added: “If it’s passed we need to know what will the timescale be.”
The plans go to committee next Wednesday (October 5).