Plans to build a four-star hotel and retail outlets on the old Lord Street bus station site have been shelved, the infrastructure minister has confirmed.
He made the revelation in a Tynwald question for written reply from West Douglas MHK Geoff Corkish.
Mr Cretney said an agreement with developer Askett Hawk required the company to submit a planning application by January 31, which it failed to do.
He said the DoI would now be submitting a paper to the Council of Ministers recommending the termination of the development agreement.
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