The developer behind the failed Crossag Farm housing scheme in Ballasalla is to go to the High Court, to challenge the refusal of planning permission.
JG Kelly Ltd will argue the planning inspector's decision was flawed, as the land had been zoned for new development, and will call for it to be quashed.
The planning refusal was a major setback for the Department of Local Government and the Environment, which wanted to build 250 low cost homes on the site.
A shortage of local facilities, including a new school, were among reasons cited for the refusal.
DoLGE Minister John Shimmin told Tynwald a new school is on hold, until the case has been decided:
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