The company has promised a family friendly leisure complex
Plans for a £30m family leisure complex on the Isle of Man have stalled.
The Manx government chose the Sefton Group's proposal for The Wave complex out of four submissions for the former Summerland site earlier this year.
But the government said it had been unable to agree terms of the lease with the planned developer and it was now "considering its options".
The site was the scene of a large fire in 1973 which killed more than 50 people.
Cinemas, bowling alleys, restaurants, bars and conference facilities were planned for the complex.
Martyn Quayle MHK, minister for tourism and leisure, said: "I realise this will be a huge disappointment to Tynwald and to island residents who, I believe, fully supported the need for new and improved leisure facilities.
"With regard to the future use of the site, the department will now take time to consider the options available and will announce its intentions as soon as it is able to do so.
"It is understood that the Sefton Group will announce their plans in light of the above following their board meeting on 22 October 2009."