A former Douglas MHK is calling for a new bus station to be built on the Lord Street site now a developer has pulled the plug on a hotel and apartment scheme.
Last week Tynwald was told Askett Hawk had failed to submit a planning application by the January deadline and the government's agreement with the firm had ended.
Askett Hawk was granted a 999 year lease on the site in 2008 after outlining plans for a £70 million development.
Former South Douglas member Bill Malarkey spoke against the deal in Tynwald two years ago.
Now a Douglas councillor, he says a major re-think's needed on the corporation's plan to develop Cambrian Place on the other side of Lord Street:
Patients raise concerns over difficulties booking GP appointments
President of Tynwald to retire from politics
'Should I stay or should I go?': Students weigh up a life and career on the Isle of Man
Last day for fundraisers taking on Mountain Course challenge
Sea Services Agreement progress stalled by Liverpool Ferry Terminal contract negotiations