It wants to turn the site into a car park
Castletown Commissioners has applied for planning permission to demolish the old fire station.
It had previously been leased to a small business but that arrangement has now expired - the local authority says it wants to develop more parking.
If the plan is approved, it would more than double the amount of available spaces in the town to 36, including four disabled bays and four electric vehicle charging points.
The commissioners are currently looking to pedestrianise Market Square permanently.
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