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It looks as if a leisure complex and hotel could still be built on the former Summerland site, at the northern end of Douglas promenade.
Tourism chiefs have agreed to consider a revised bid from local company Springham Limited.
Their directors met Minister for Community, Culture and Leisure David Cretney yesterday (Monday) to discuss why their scheme for a four-star hotel with conference facilities, fitness centre and swimming pool, was not being progressed.
However, the company has now agreed to revise its plans, leaving Mr Cretney to defer proposals which would allow the site to be sold for housing, at a price of around £5 million.
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