There is OSX86, but why not do it for the classic Mac OS?
Because the 68k CPU for which the classic Mac OS is written is completely and utterly different from an Intel CPU.
We would probably have to convert the 68k code to C. [...] Any ideas of how we could convert the 68k code to C?
This makes about as much sense as making an airplane by gluing lots of butterfly wings to a dolphin.
I think this would be a cool project because it would be a classic Macintosh clone but for PC architecture.
Except it wouldn't be able to run any applications, since all of the classic Mac OS applications would still require the 68k architecture. This is why we have emulation.