One of the oldest buildings on North Quay, Douglas, is to be given a new lease of life - bringing to an end years of wrangling that has thwarted redevelopment of the historic quayside.

But while the former Newson’s warehouse is to be retained, the building next door will be demolished despite it, too, being registered.

Kelman, the company behind the £8m development known as Merchant’s Place, had threatened to pull out of the site last year after losing a five-year battle with planners over the demolition of the registered Newson’s building.

But in June it received planning approval for revised plans involving the demolition of numbers 22 & 23 and 25 & 26 further along North Quay, and the construction of two new buildings together with the retention and conversion of historic Merchant House.

And this week it secured planning consent for its applications (25/90789/GB and 25/00788/CON) that will see the Newson’s warehouse at no.27, which dates back to the late 18th century, restored and converted into a bar/restaurant with a third-floor apartment.

But the small, two-storey building next door at no.28, which was also part of Newson’s and which is at least as old, will be flattened and replaced with a four-storey unit of modern design comprising a small retail unit and townhouse with roof terrace.

Conservation planning consultant Patricia Newton said there should be a presumption against demolition of a registered building. ‘Registration is a long and detailed process and is not undertaken lightly,’ she pointed out.

Mark Savage, representing Kelman, told the planning committee that the loss of a registered building was ‘regrettable but an acceptable compromise’.

He said it would be possible to convert no.28 but the floor area was so limited the sums did not add up.

The whole development, he admitted, would struggle to make any money and it was only the grant from the Department for Enterprise that made it viable.

Planning officer Chris Balmer said: ‘We have taken a balanced approach and felt that the retention and renovation of no.27 and the proposed scheme put forward outweigh the harm caused by the loss of a registered building.’

Members of the planning committee voted five to one to support the main application and registered building consent. Only Adele Betteridge voted against, saying: ‘I don’t see the net gain in destroying an historical asset’.

A previous application to redevelop the whole site was refused by the planning committee in September 2022 and that decision was upheld on appeal.

A structural survey found that the former Newson’s shop and warehouse are in a very poor and unsafe condition. Other than necessary essential repairs these buildings have remained unchanged since the appeal decision was upheld.

Kelman said in its application that the scheme will be a significant boost for the local economy, creating jobs for at least 12-15 people.

‘This development of North Quay as a whole will help grow the area as a destination and help enable an attractive tourist promotion of the quayside,’ it said.