Douglas could die - unless projects to regenerate the capital bear fruit soon.
Council leader David Christian says Douglas must improve its image to retain businesses and attract new ones.
His comments came during the council's budget debate on Wednesday where, despite a standstill rate, a raft of investment in new projects was promised.
They include a revamp of Hutchinson Square, installation of CCTV, upgrading of commercial properties and several new playgrounds.
Councillor Christian says progress is also needed in the government-led town regeneration scheme:
Treasury Minister Allan Bell says he regrets the council's decision not to be involved in upgrading of the Bowl stadium - which could have been the centrepiece of Douglas regeneration.
But Mr Bell says the council must get on with other projects to breathe new life into the capital.

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