Chief Minister Alf Cannan says the government is working with a developer over a project on North Quay in Douglas.
The owner of the Newson's site said they wouldn't invest in the Island anymore after being refused to demolish the shop - which lies in a conservation area.
In Tynwald, Mr Cannan was asked about the site by Central Douglas MHK Chris Thomas.
Mr Cannan said the government had spoken to the developer about the scheme:
Bus services north and south face disruption later
Bus Vannin says a number of its services may face disruption this evening.
Wildlife Trust unveils woodland plans
The Manx Wildlife Trust has submitted a planning application for a new woodland in the northeast of the Island.
Deadline looms for by-election nominations
Time's running out to get your forms filled in if you'd like to stand as a commissioner in Marown.
Biker in UK hospital after Mountain crash
Police are appealing for witnesses to come forward after a crash on the Mountain Road yesterday afternoon.
Trial event closes roads in Peel and Ramsey
There'll be road restrictions in Peel and Ramsey during a motorsport event this weekend.
Requisition meeting for Garff voters
A requisition meeting will be held in Maughold next month.
Castletown police station could be yours... for £250,000
Fancy owning a landmark building in the south of the Island?
Brewery advertising for operator for landmark Laxey pub
Could you run one of Laxey's best-known pubs?
