More than 50 people died in a fire at the leisure complex site in 1973
Developers have been invited to submit plans for the former Summerland site where a large fire in 1973 killed more than 50 people.
The plot has been vacant for several years, and last year plans for a £30m facility with a multiplex cinema, restaurant, and bars, were dropped.
Talks between the Manx government and the Sefton Group, which was to lease the site, broke down.
A tender process will begin in April, the tourism and leisure minister said.
Martyn Quayle said people interested in developing a leisure facility should contact the government as soon as possible and plans should be submitted within three months.
All proposals should include details of how the Manx Electric Railway depot facilities could be maintained.