Douglas council says it wants to see a sheltered housing complex built on the former prison site on Victoria Road.
The council will be asked to support the proposal, put forward in response to a government consultation, at its monthly meeting next week.
Councillor David Ashton says the site offers a prime opportunity to increase the stock of sheltered housing, much needed for a growing elderly population:
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John Wannenburgh: 'Commitment, compassion and an unwavering sense of duty'
Tributes following the unexpected death of Douglas North MHK
Manx Utilities 'deeply saddened' by death of chairman
Wannenburgh praised for 'exceptional' leadership
"Tynwald will be a less colourful place without John" says president
Watterson describes Wannenburgh as 'devoted' to constituents
Douglas North MHK pays tribute to 'amazing friend'
Wannenburgh had 'biggest heart of anyone I've ever met' says Ashford