Peel Commissioners have submitted a planning application to demolish part of the Bowling Green Café.
The venue just off the promenade closed its doors nearly two years ago.
Under the latest proposals, the public toilets at the site on Marine Parade would be kept, while the cafe is partly demolished.
It comes after plans by the local authority to build a community centre on the nearby tennis courts were given the green light in September.
MHK to query gas buying for power generation
How much gas has the Island bought for winter power?
Yoga studio applies for sign permission
A yoga studio in Douglas has applied for retrospective planning permission for signs outside the building.
Yacht club worries over lifeboat retirement
A yacht club based in the south of the Island says it has reservations about Port St Mary losing one of its lifeboats.
One nuisance cyclist ticketed in more than three years
Douglas Council says it's had 13 complaints about cyclists in almost four years.
New ministerial post created by chief minister
The Isle of Man has a new ministerial job - and a minister to go with it.
Huge floating book fair to arrive in Douglas next month
The world's largest floating bookshop will be in Douglas for almost a fortnight next month.
Stay safe for Hop Tu Naa tonight
Police are asking trick or treaters to make sure they can be seen tonight.
Special Olympics fundraiser needs you
A organisation for athletes with learning disabilities has raised more than £17,000 to compete at a global competition in Chile next year.
