The local authority secured government approval in 2006-07 to give the club a long lease of 21 years.
That lease of the Shore Road building runs out in 2028.
But Peel Town Commissioners has written to the tenants to outline plans to ‘repurpose’ and renovate the building to bring it up to modern standards.
The intention is then to invite expressions of interest from prospective tenants.
But Mr Sewell said that does not necessarily mean that the sailing club lease won’t be renewed.
He said: ‘Hopefully, we will get an expression of interest from the existing tenants. Everything is on the table and nothing is ruled out.’
The town clerk said he was bound by commercial confidentiality and could not give details relating to the tenancy of the Rocket House unless he had the permission of the tenants.
But he said just like any other commercial tenancy, the local authority as landlord will review the properties in its portfolio before leasing them out again.
Mr Sewell said repurposing and refitting the building would enable other people to use it.
But he insisted this didn’t necessarily mean that it wouldn’t be used in the future for exactly the same purpose as it is now.
Peel Sailing and Cruising Club uses the venue to provide shower facilities for sailors, and to host events like the Traditional Boat Weekend.
The Moddey Dhoo Motorcycle Club also uses the facility. Mr Sewell said the long-lease was secured from the then Department of Local Government and the Environment (DoLGE) at a time when the marina was being built and was based on providing support to that development.
But Mr Sewell said: ‘Since then, things have changed.’
He said the Department of Infrastructure had invested heavily in providing facilities such as showers, toilets and a meeting room for users of the marina.
And he said another big change during the life of the Rocket House tenancy will be the advent of cleaning bathing waters in the bay when the new sewage treatment works eventually goes on-stream in 2026.
Mr Sewell said the building and the land adjoining it - which is also owned by the local authority - could provide a beach facility for the town.
He said that the next lease would unlikely be another long one of 21 years.
Information campaigner Trevor Cowin has submitted a Freedom of Information request to the local authority seeking extracts of the minutes of meetings where the Rocket House lease was discussed, and copies of any lease or draft lease relating the building’s future use.