A village’s controversial redevelopment project has been abandoned.

Manxonia House in Port St Mary has been placed on the market for an asking price of £295,000.

The derelict building was bought by the local authority in 2016 for £191,000.

At a recent public meeting, commissioners’ chairman Michelle Haywood said just under £270,000, including the purchase price, had been spent on its refurbishment so far.

‘We don’t have the money to complete the project,’ she admitted.

She estimated the project would cost £400,000, including purchase price.

Controversy has surrounded its purchase, the lack of prior public consultation and cost of refurbishment.

Residents called it a millstone and blamed it for the 5.2% rate rise – which some commissioners have denied.

It also emerged at the public meeting in June that the Commissioners had taken the decision to purchase Manxonia House without seeing a survey.

Announcing the board’s decision to sell the building, vice chairman Alan Grace said: ‘After receiving several valuations, the property will have an asking price of £295,000.

‘A covenant retaining the property for commercial use will also be in place. The board are keen to see commercial business continue to flourish in Port St Mary and see the covenant as a way to support this.’

Funding for the purchase was originally to have come from borrowing. But in the event, the funding came from money in an account that had gone unnoticed for years.

A Freedom of Information request revealed that the original business case didn’t stack up as it would have meant a net call on rate-borne income of just under £5,000 a year.