Proposals for a multi-million-pound redevelopment of the former Douglas bus station site go back before the planning committee next week.

The scheme, which includes a 12-storey tower block - making it the highest building in the capital - as well as a multi-screen cinema and 85 flats, moved a step closer last week.

A planning officer’s recommendation to refuse the application was not accepted by the planning committee on the casting vote of the chairman.

When the application (25/90516/B) returns on Monday, the focus will be on the applicant’s controversial plan for a ‘review mechanism’.

Under this mechanism Lord Street Development SPV Ltd will ultimately pay a commuted sum capped at £1.574m in lieu of affordable housing and public open space - but only if the development achieves a return of 20%.

It said that without this, the scheme would not be financially viable.

This was despite the possibility that government funding of £15.8m towards the project could be made available.

The planning officer is still recommending refusal.

A three-stage review process is being suggested by the planning department for the committee to consider.

It suggests that a gross development value equal to, or higher than 17.5% would go towards affordable housing and then public open space contributions up to £1,100,750 and £473,175 respectively.

But the applicants want a two-stage review and any surplus above a 20% return should be applied to commuter sums capped at those figures - a total of £1,573,925.

An objector to the application said this was contrary to planning policy and untenable.

The planning officer said the review mechanism could be considered acceptable only for this specific site, given it is a brownfield development of significant public benefit.

He said it was highly unlikely that such an approach would be considered acceptable on any other site.