The Department of Infrastructure has applied for planning permission to turn part of the Summerland site into a car park.
It says it wants to mark out 32 car parking spaces, with another two disabled bays.
In its application, it says it's still marketing the site and has had a number of approaches from would-be developers.
But it adds it wants to use the hardstanding area as a temporary car park for 18 months to help relieve parking problems at the northern end of Douglas Promenade.
Huge floating book fair to arrive in Douglas next month
Stay safe for Hop Tu Naa tonight
Special Olympics fundraiser needs you
Peel ready for bonfire and fireworks later
Government: "UK never told us about child murderer"
Farm shop's newest worker needs your name suggestions
Bus Vannin gives update on staffing problems and routes affected today
Toilets vandalised for fourth time in a month