University with refurbished bar north of city (5)
I believe the answer is:
urban
'city' is the definition.
(thesaurus)
'university with refurbished bar north' is the wordplay.
'university' becomes 'u' (**).
'with' is a charade indicator (letters next to each other).
'refurbished' indicates anagramming the letters.
'north' becomes 'n' ('N' can be a synonym of 'north').
'bar'+'n'='barn'
'barn' with letters rearranged gives 'rban'.
'u'+'rban'='URBAN'
'of' acts as a link.
(Other definitions for urban that I've seen before include "built-up area?" , "Citified" , "City - pope" , "Relating to city life" , "Town-dwelling" .)