The chairman of Castletown Commissioners says its members want to organise a public meeting to seek views on the future of Callow's Yard.
The local authority had a further private meeting on the matter on Friday night, when the decision was taken.
Speaking live on Manx Radio's Present Politics programme this lunchtime, chairman Kevin Weir told John Moss he hoped the owner of the development would attend:
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New weather warning covers next two high tides
Full lighting capability restored at Isle of Man Airport
Issue affecting main runway now fixed
Snaefell Mountain Railway out of action after storm damage
But the MER will be operating as normal tomorrow
Council confident for Manor Pub's future
Question marks over beloved establishment's future
