Laxey Commissioners have applied for permission to bulldoze their offices and build housing there.
The board says the site on New Road is jointly owned by itself and the Manx Electric Railway.
At present the building is used by the local authority, Lonan Commissioners, the police and the Manx Bird Atlas.
The town hall is in need of refurbishment, but the costs are said to be prohibitive.
You can find out more about the proposals on the government’s website gov.im
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