The site owners spent five years trying to get plans approved
Negotiations are said to be ongoing between government and a potential developer of the Newson's site in Douglas.
Kelproperties had spent five years trying to get permission for its plans, before 'giving up' in April last year.
The warehouse dates back to the 1700s and is thought to be one of the last remaining buildings of that era on North Quay.
Chief Minister, Alf Cannan, says talks are still happening between the two parties:
Kelproperties confirmed talks are happening, and has given Manx Radio the following statement:
"We would love to comment fully about our planning system, but it may harm our current efforts to try to get some common sense to apply to this long running sore.
"This has currently determined that we will no longer do any more development on the island until this is sorted out."
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