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.
Bad weather means two ferry crossings cancelled
Two ferry sailings have been called off in the face of bad weather tonight.
Commissioner hits out at "nuisance" campervans
Are camper vans becoming a problem in Onchan?
Livestock worrying consultation ends this week
There are just days left to air your views about dog attacks on farm animals.
Warning over possible ferry disruption tonight
Two ferry sailings are at risk of disruption tonight.
Department told to provide new FOI response to Visit Isle of Man query
The Department for Enterprise will have to give a new answer to a Freedom of Information request after an appeal to the Island's information commissioner.
700 sign petition to keep Castletown street sweeper
A petition to give a street sweeper a permanent job in Castletown has hit more than 700 signatures in just three weeks.
Mystery after oily birds found in Peel
An Island charity says it hopes this will be the year authorities find the source of oil contaminating birds in the west of the Island.
Laxey move announced for well-known jewellers
A landmark business in Douglas says it's moving out of the capital after more than three decades.
