Proposals to knock down the Grand Island Hotel in Ramsey and build 68 new apartments on the site, go before the Island's Planning Committee today (Friday).
Seymar Developments is seeking permission to demolish the boarded-up former landmark building before a new hotel is built on Mooragh Promenande.
That challenges a legal agreement, to ensure future hotel accomodation in the town.
The plans also do not include any low cost housing.
The Planning Committee will recommend demolition of the Grand Island should be allowed before the new hotel accomodation is provided.
That is because of concerns about the safety of the deteriorating building, which has proved a magnet for break-ins and vandalism.
But there's a legal proviso that new apartments are not developed on the site, until the hotel proposed for Mooragh Promenade is trading.
In its design statement, Seymar Developments outlines plans for luxury accomodation and states that providing 25 per cent affordable accomodation on the site, in line with the Isle of Man Strategic Plan, 'may not be appropriate'.
Planners recommend accepting an alternative offer by the developer, to make a contribution in lieu of affordable housing, to the Government Housing Reserve Fund.
The sum on offer has not been disclosed.

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