The Department of Infrastructure has paid more than £26,000 in licence fees to the owner of the former Lord Street bus station site since it started operating the land as a car park.

The area has been used since June last year after the Parade Street car park was used for border checks for ferry passengers.

Before the pandemic, the department was involved in a spat with the owner, Kane Ltd, who wanted to use the site for car parking.

The the department fought against it being used as a car park to try to ensure a development would take place on the site.

Kane plans a cinema, a 198-space car park and restaurants in the Lord Street development. It also would be a ’transport hub’, serving buses.

However, the project has been mired in problems after two prospective tenants went into voluntary insolvency.

A number of other proposals for the site over the last 20 years have failed.

A Freedom of Information request from Manx Radio revealed the land owner has received £26,346.37 up to January 19 this year.

The agreement means the owner gets 20% of the DoI’s gross takings.