Plans to redevelop the Summerland site are on hold as the Department of Tourism and Leisure battles with landowners over access to the surrounding cliff.
Speaking in the House of Keys this morning, Minister Adrian Earnshaw told members his department needs to establish the stability of the cliff, which can't be done without the compliance of people living in the area.
Mr Earnshaw said the DoTL was considering marketing the site to other departments or handing it to central government to form part of the land bank.
But he faced accusations that he wasn't interested in providing leisure facilities, particularly for young people, which he denied:
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