The chairman of Castletown Commissioners says its members want to organise a public meeting to seek views on the future of Callow's Yard.
The local authority had a further private meeting on the matter on Friday night, when the decision was taken.
Speaking live on Manx Radio's Present Politics programme this lunchtime, chairman Kevin Weir told John Moss he hoped the owner of the development would attend:
Clip 1
Pub's inclusive toilet signs vandalised
"Bigotry isn't cool", says The Original Quids Inn
£100K cash injection for energy efficiency scheme
4,500 homes benefit from cost-saving kit
DoI has change of heart over seaweed clearance in Laxey Harbour
It follows concerns raised by boat owners
Ramsey Commissioners seeking four new people to join board
Vacancies are open across both North and South Ward
Teresa Cope: Island's healthcare 'needs to look very different in 10 years' time'
'We need to invest now' Manx Care's outgoing CEO tells Tynwald committee