It has become something of an eyesore on North Quay in Douglas but any development of the old Newson’s building looks way off.

Kelman, owner of the former Newson Trading Co. shop and warehouse, indicated in April this year it was giving up on an £8m scheme after losing a five-year battle with planners over the demolition of a registered building.

But Chief Minister Alf Cannan was in bullish mood during Tynwald on Tuesday when asked by Douglas Central MHK Chris Thomas what government’s assessment is of the development viability of the site and what contribution government can make to the redevelopment of this site.

Mr Cannan said: ‘The Department of Enterprise has been working with the owner and developer to try and reach a solution but this has not been possible.

‘There is potential for the developer to apply to the Island Infrastructure Scheme.’

The Island Infrastructure Scheme aims to help fast track the development of brownfield sites and offer financial assistance but Mr Cannan would not suggest any further support from the government.

After losing its planning battle earlier this year, Kelman said it will sell the buildings and would no longer invest in the island unless planning laws are changed.

In a statement it said: ‘It’s such a shame - this development could have brought so much to the North Quay and the city of Douglas.

‘In addition to the £8m construction opportunity, we wanted to create as pleasant retail, commercial and residential environment for the city.

‘Our proposed plan appeared to be exactly what the people of Douglas wanted, as we had more than 500 residents write to us, supporting our project.

‘It also appeared to fit the Island Economic Strategy but the planning legislation, as it stands, is unable to deliver the government’s vision.’

Plans for the development, known as Merchant’s Place, were submitted in February 2022 (22/00149/GB).

The proposals involved the demolition of six buildings including an historic warehouse with 10 flats and three bar and restaurant units built in their place.

Planning consent for the redevelopment was refused in September 2022 and the decision confirmed after Kelman’s appeal was dismissed in January this year.

Recommending refusal, the planning officer said demolition of the registered Newson building at 27-28 North Quay was ‘unacceptable as the applicant had not demonstrated that all reasonable efforts had been made to preserve the building not provided sufficient justification for its total loss’.

In 2021, Kelman applied for a demolition order, citing an immediate risk of collapse.

But the government’s structural engineer, who advised the planning committee, said that the warehouse was ‘a 100% robust building’ and ‘capable of being repurposed’.

A repairs notice was issued ordering Kelman to carry out works to make the building safe, secure and to prevent rain getting in.

An appeal against the notice was subsequently withdrawn but the required works were never carried out.